Vitro, Satmex, Nortel, Workflow, Lehman: Bankruptcy

Vitro SAB, Mexico’s largest glassmaker, agreed to dismiss the Chapter 15 petition it filed in New York in mid-December, according to a document submitted yesterday to the U.S. Bankruptcy Court in Fort Worth, Texas, where bondholders filed involuntary Chapter 11 petitions a month earlier against Vitro’s U.S. subsidiaries, Bloomberg reported. Vitro was forced into dismissing the Chapter 15 case following a ruling from a court in Mexico this month dismissing Vitro’s attempted reorganization under that country’s version of Chapter 11. A Chapter 15 case is exclusively to provide support for a bankruptcy case pending abroad. When the Mexican case was dismissed, the necessary predicate for the Chapter 15 petition in New York evaporated. Vitro is appealing the ruling by the judge in Mexico. The company said it believes it’s proper under Mexican law to use intercompany debt when third-party creditors vote down a plan. Read more.