Mexican glassmaker Vitro SAB is heading to a U.S. appeals court to save its restructuring at home from an assault by U.S. creditors in a case that could transport the U.S. bankruptcy code beyond that nation's borders, Reuters reported. The case pits one of Monterrey, Mexico's powerful and politically connected "Group of 10" businesses against U.S. hedge funds, which Latin American critics have reviled as "vultures" for their battle against Argentina's sovereign debt restructuring. Hanging in the balance is the use of Chapter 15. Foreign companies have used this 7-year-old piece of the U.S.

Acknowledging his concern that Canada’s housing market is overheating, Finance Minister Jim Flaherty is clamping down with four changes to mortgage insurance rules, The Globe and Mail reported. At a news conference in Ottawa, Mr. Flaherty confirmed that Ottawa will reduce the maximum amortization period to 25 years from 30 years. Secondly, the maximum amount of equity homeowners can take out of their homes in a refinancing is being reduced to 80 per cent from 85 per cent.

Catalyst Paper has announced that it is getting another chance to settle with creditors, Canada.com reported on a story from The Citizen. The company, whose holdings include the Crofton mill, has received approval from the court for additional meetings of its secured and unsecured creditors to consider a further amended plan of arrangement under the Companies' Creditors Arrangement Act. These meetings are scheduled for June 25.

Several emerging-market countries Monday detailed their plans to boost the International Monetary Fund's coffers by more than $90 billion, to push the total new commitments to about $456 billion, The Wall Street Journal reported. China is pledging $43 billion, while India, Russia, Brazil and Mexico told Group of 20 officials they would commit around $10 billion each. Turkey committed $5 billion, and a handful of others offered about $1 billion.

A U.S. federal judge refused Wednesday to enforce Mexican glass maker Vitro SAB's controversial debt restructuring in a closely watched bankruptcy case that threatened to sever the cross-border business cooperation between the two nation's legal systems, The Wall Street Journal reported. Judge Harlin D. "Cooter" Hale of the U.S. Bankruptcy Court in Dallas sided with bondholders in rejecting Vitro's bid, in what has been called one of the most important cases decided under Chapter 15, the section of the U.S. Bankruptcy Code governing international insolvencies.

Helicopter equipment and repair company Northstar Aerospace Inc. is filing for creditor protection in both Canada and the United States while it arranges the sale of its business for more than US$70 million, the Winnipeg Free Press reported. The troubled Chicago-area concern said Thursday that its U.S. subsidiaries, Northstar Aerospace (USA) Inc., Northstar Aerospace (Chicago) Inc., Derlan USA Inc. and D-Velco Manufacturing of Arizona Inc. have filed Chapter 11 petitions in the U.S. Bankruptcy Court for the District of Delaware. Meanwhile, Northstar Aerospace (Canada) Inc.

Parts of bankrupt Dutch aluminium producer ZALCO will be bought by a Dutch and a U.S. company, which will continue casting and anode production but smelting operations will cease, the Dutch buyer and an administrator said on Monday, Reuters reported. ZALCO, which had a production capacity of 275,000 tonnes per year of aluminium, filed for bankruptcy in mid-December. Its plant at the port of Vlissingen in the southwest of the Netherlands, which employed 600 people, was shut a few days later due to a lack of funds to pay energy suppliers.

Air Canada and Aveos have reached an agreement that will help facilitate a sale of some assets of the bankrupt aircraft maintenance firm, and the airline promised to offer some service contracts to a buyer of the Aveos assets, Reuters reported. Aveos Fleet Performance Inc, once the airline's maintenance division, halted operations in March and laid off roughly 2,600 workers, most of whom were employed at maintenance centers in Montreal, Winnipeg and Vancouver. The monitor's report said Air Canada has agreed to waive any rent on facilities leased by Aveos until Sept. 30.

Vitro SAB’s bid to enforce its Mexican bankruptcy plan in the U.S. is set to be decided by a judge next week after the glassmaker clashed with bondholders in court over the plan, Bloomberg reported. U.S. Bankruptcy Judge Harlin DeWayne Hale in Dallas said in court today that he plans to rule on Vitro’s enforcement motion next week, probably by June 13. Vitro, which has won approval for the bankruptcy plan in Mexico, is seeking an order from Hale enforcing the restructuring and stopping litigation by bondholders who have been fighting the plan in the U.S.

Lawyers who advise companies on insolvency proceedings, lenders for emergency financing for companies seeking court protection while they are restructuring and pension matters are closely watching the outcome of Supreme Court of Canada’s hearing today of an appeal in what has become known as the Indalex case, The Gazette Moves Deals And Takes blog reported.