U.S. Judge Puts Units Of Mexico's Vitro Into Bankruptcy

A U.S. judge ordered that 10 units of Mexican glassmaker Vitro SAB de CV be put into U.S. bankruptcy and he found that several of them had taken secret steps to prevent creditors from collecting money owed to them, Reuters reported. Several U.S. hedge funds led by Aurelius Capital Management and Elliott International hold defaulted notes issued by the subsidiaries and sought to put the units into bankruptcy. After the hedge funds sought involuntary bankruptcy proceedings, five of the subsidiaries secretly reincorporated in the Bahamas and one of the subsidiaries was sold, according to Harlin Hale, a U.S. bankruptcy judge in Dallas. "These acts were taken, apparently, to prevent creditors with guarantee claims from taking steps to collect on their judgments," Hale wrote in a 15-page opinion published on Tuesday. Vitro said in a statement it is considering an appeal. Read more.