Vitro SAB offered to buy back or swap $1.2 billion in debt from bondholders as the company prepares to seek bankruptcy protection before the end of the year. The bonds jumped and shares climbed to the highest in more than two years, Bloomberg reported. Mexico’s largest glassmaker will file for bankruptcy in Mexico and under Chapter 15 in the U.S. within the next two months, Chief Restructuring Officer Claudio del Valle said in a conference call with reporters today. Debt holders may get as much as 73 cents on the dollar under the terms proposed today, the Monterrey-based company said.

A U.S. bankruptcy judge said he'll give creditors of Awal Bank BSC more time to challenge the course of the Bahrain bank's unusual Chapter 11 case before deciding whether it can proceed, Dow Jones Daily Bankruptcy Review reported. Judge Allan L. Gropper of the U.S. Bankruptcy Court in Manhattan indicated at a Tuesday hearing that he would consider Awal's motion to proceed with its Chapter 11 case after giving creditors the opportunity to come forward, according to the administrator overseeing the bank's insolvency proceedings in Bahrain and elsewhere.

The London-based administrator of Awal Bank BSC said the Bahraini institution filed for Chapter 11 protection in the U.S. in an attempt to wrest back payments made to its creditors in the U.S. before regulators seized the bank, Dow Jones Daily Bankruptcy Review reported. Awal, which filed for Chapter 11 protection with the U.S. Bankruptcy Court in Manhattan on Friday, was placed into administration in its home country in July 2009. The bank gained recognition of its foreign proceeding in U.S. courts, known as Chapter 15 bankruptcy, last year.

Several U.S. airports, including New York's John F. Kennedy International, said Compania Mexicana de Aviacion has failed to make a promised Sept. 15 payment to them, Dow Jones Daily Bankruptcy Review reported. In papers filed Monday with the U.S. Bankruptcy Court in Manhattan, the airports demanded additional protections for the amounts owed to them, including the right to tap certain letters of credit and to take back space assigned to Mexicana in their facilities, after the Mexican airline reneged on a promise to pay fees.

Riviera Marine (Int.) Pty Ltd., part of a group of Australian companies that manufacture and sell luxury boats, is seeking bankruptcy protection in the U.S., Trade Only Today reported. Riviera CEO John Anderson said in a statement that the filing is not a new proceeding, but "merely a request that the U.S. courts recognize the [Deed of Company Arrangement] process, which was officially completed by Riviera in June 2010 and that allows us to complete our restructure of both our Australian and U.S. operations." The U.S. filing follows a voluntary administration in Australia.

Metrofinanciera SA, a closely held provider of mortgage loans in Mexico, sought bankruptcy court protection from U.S. creditors, Bloomberg reported. The company, based in Monterrey, Mexico listed both debt and assets of more than $500 million in Chapter 15 documents filed today in U.S. Bankruptcy Court in Corpus Christi, Texas. Chapter 15 protects foreign companies from U.S. lawsuits and creditor claims while a company reorganizes abroad.

Compania Mexicana de Aviacion is unlikely to resume operations after grounding all its flights over the weekend, four weeks after filing for bankruptcy protection in Mexico and the U.S., UBS AG said, Bloomberg reported. That will initially curb air traffic and hurt airport operators, including Grupo Aeroportuario del Sureste SAB, Grupo Aeroportuario del Pacifico SAB and Grupo Aeroportuario del Centro Norte SAB, UBS analysts Tomas Lajous and Luis Galvez wrote today in an e-mailed note. “We expect this should be permanent,” the analysts wrote.

Nuevo Grupo Aeronautico SA, the holding company for airline Compania Mexicana de Aviacion, was purchased yesterday by a group of Mexican investors and the country’s pilots’ union, according to a member of the investment group and a union leader, Bloomberg reported. Tenedora K, which was formed in order to purchase Mexicana, bought 95 percent of the airline’s shares, union secretary general Fernando Perfecto said yesterday. The pilots’ union owns 5 percent of the company, said Perfecto, who was involved in the negotiations.

A bankruptcy judge issued a preliminary injunction shielding Compania Mexicana de Aviacion from creditors seeking to seize its U.S. assets, Dow Jones Daily Bankruptcy Review reported. Judge Martin Glenn of the U.S. Bankruptcy Court in Manhattan ruled in the Chapter 15 bankruptcy case of airline Mexicana's main unit for international flights. The case is a companion of the unit's main bankruptcy proceeding in Mexico.

Compania Mexicana de Aviacion, Mexico’s biggest airline by passengers, agreed to return at least eight leased airplanes and a U.S. judge put off ruling on a bid to shield the company from creditors, Bloomberg reported. Mexicana agreed to return three planes to Wells Fargo & Co. One was returned in July, Arthur Rosenberg, a lawyer for Wells Fargo Bank Northwest NA, said today in an interview. U.S. Bankruptcy Judge Martin Glenn in Manhattan today postponed ruling on Mexicana’s request for a preliminary injunction barring legal actions by creditors.