Vitro case conversion, trustee appointment stays extended to Feb. 6

By Caroline Salls

Pittsburgh, Feb. 4 - Vitro Asset Corp. has entered into a stipulation with an informal group of noteholders that stays court orders converting the Vitro Asset debtors' bankruptcy cases to Chapter 7 and calling for appointment of a Chapter 11 trustee, according to a Friday filing with the U.S. Bankruptcy Court for the Northern District of Texas.

Under the stay, the conversion will not take effect until at least 1 p.m. ET on Wednesday. The trustee appointment was stayed for the duration of the conversion stay period, and the U.S. Trustee was ordered not to appoint a Chapter 11 trustee until further notice from the court.

The stay period was previously scheduled to expire on Feb. 1.

During the stay period, the debtors that consented to conversion, the Chapter 11 debtors and other non-debtor affiliates can only operate "in the normal course" and are otherwise prohibited from moving assets or diverting business opportunities to other entities.

In addition, the debtors and affiliates are temporarily enjoined from transferring any assets that any of them owns or controls outside of the ordinary course of business, including transferring assets located in the United States to other countries outside the ordinary course of business.

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

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