Vitro America gets court OK of procedures for $44 million asset sale

By Caroline Salls

Pittsburgh, May 10 - Vitro America, LLC received court approval of the bidding procedures in connection with the proposed $44 million sale of substantially all of its assets, according to a Tuesday filing with the U.S. Bankruptcy Court for the Northern District of Texas.

The stalking horse bidder is Grey Mountain affiliate Vitro America Acquisition Corp.

Competing bids must be for at least $250,000 more than the Vitro America Acquisition bid.

Vitro will pay a 1.9% breakup fee plus reimburse up to $1 million of Vitro America Acquisition's expenses if it is not the high bidder.

Competing bids are due by 4 p.m. ET on May 20 and must be for at least the sum of the purchase price, the breakup fee, the expense reimbursement and a $250,000 initial incremental bid amount.

Bids at auction must be made in $250,000 increments.

The auction will be held on June 1, if necessary, and the sale hearing is scheduled for June 9.

Vitro is a Nuevo Leon, Mexico-based glass manufacturer. An involuntary bankruptcy case was filed against the subsidiaries on Nov. 17. An order of relief was entered for some of the subsidiaries on April 6, and they have since been operating as debtors-in-possession. The Chapter 11 case number is 11-32600.

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