Vitro ask court to abate involuntary case proceedings pending appeal

By Caroline Salls

Pittsburgh, Sept. 14 - Vitro Asset Corp. and the other alleged debtors in its involuntary bankruptcy case asked the U.S. Bankruptcy Court for the Northern District of Texas to abate all proceedings in the case pending the U.S. Court of Appeals for the Fifth Circuit's ruling on an enforcement appeal, according to a Friday court filing.

As previously reported, the bankruptcy court issued a clarification to its June 13 opinion on U.S. enforcement of Vitro's financial restructuring, making clear that enforcement of the company's Mexican court-approved concurso plan was denied in its entirety.

Vitro said in a June news release that it planned to immediately seek an appeal to the U.S. Court of Appeals for the Fifth Circuit.

"If the Fifth Circuit accords comity to the concurso approval order, thereby making the cancellation of the alleged debtors' obligations that form the basis for the involuntary petitions effective in the United States after this court enters orders for relief against the alleged debtors, the alleged debtors would suffer substantial and irreparable harm," the Vitro debtors said in Friday's motion.

Vitro said holding all of the involuntary case proceedings in abeyance pending the circuit court ruling is both mandatory, based on a temporary restraining order issued by the bankruptcy court and extended by the circuit court, "and amply warranted by the circumstances of thee cases."

The company said the Fifth Circuit's ultimate ruling on the enforcement appeal will significantly affect the involuntary cases and may render them moot.

If the bankruptcy court declines to abate the involuntary cases, Vitro said a briefing schedule should be set so parties can address numerous issues before a ruling on the involuntary petitions and an Oct. 5 hearing should be adjourned.

Vitro is a Nuevo Leon, Mexico-based glass manufacturer. Its Chapter 11 case number is 11-32600.

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