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Vitro representative files complaint, eyes temporary restraining order
By Lisa Kerner
Charlotte, N.C., April 27 - Vitro, SAB de CV Chapter 15 foreign representative Alejandro Francisco Sanchez-Mujica asked the court to immediately issue a temporary restraining order and provide injunctive relief to keep the holders of restructured debt from continuing litigation against the company, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.
The company wants a hearing scheduled prior to the expiration of the initial 14-day term of the temporary restraining order.
In December, two members of the steering committee of noteholders began "substantially identical" lawsuits in the Supreme Court of the State of New York against Vitro and 49 of its subsidiaries in their capacities as old guarantors for breach of contract and payment of accelerated principal and accrued interest with respect to their beneficial holdings of old notes, the filing said.
The plaintiffs also obtained an ex parte order of attachment and used the order to cause "significant disruptions to Vitro's businesses and reorganization efforts," the filing said.
Specifically, the attachment orders were served on D.F. King & Co., Inc., the depositary for the company's heavily discounted tender offer that faced opposition from some noteholders.
As a result, D.F. King refused to effectuate the transfer of the old notes tendered in the tender offer or disburse the consent payment to holders that consented.
The plaintiffs also served copies of the attachment orders on Vitro customers in an attempt to garnish accounts payable, the filing said.
Vitro, a Nuevo Leon, Mexico-based glass manufacturer, filed for a new Chapter 15 bankruptcy on April 14 to gain U.S. recognition of its Mexican reorganization proceedings. The new Chapter 15 case number is 11-11754. The company made an earlier Chapter 15 filing in December.
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