Vitro Asset examiner finds no fraud in transfer of assets, employees

By Caroline Salls

Pittsburgh, Oct. 1 - An examiner appointed in Vitro Asset Corp.'s bankruptcy case reported that a February 2012 transfer of assets and employees to Vitro International Services Corp. from Vitro Packaging, LLC does "not constitute actual or constructive fraud," according to an Oct. 1 filing with the U.S. Bankruptcy Court for the Northern District of Texas.

Examiner Clifton R. Jessup Jr. was appointed in June to investigate the transfer.

Jessup said in his report that the officers and managers of Vitro Packaging, in concert with its counsel, "took unusual actions to minimize any negative economic impact on VIP and its creditors" by making sure that Vitro Packaging continued to receive 6% profit for the four remaining months after the assignment of a services agreement to Vitro International, as well as by selling the tangible assets to Vitro International for more than market value so that the transfers did not result in a loss of value for Vitro Packaging and its creditors.

As a result, the examiner recommended that no causes of action be filed in connection with the transfers.

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

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