In the Matter of Vitro S.A.B. de C.V.
United States Court of Appeals for the Fifth Circuit
701 F.3d 1031 (2012)
- Written by Ryan Hill, JD
Facts
Vitro S.A.B. de C.V. (Vitro) (debtor) was a holding company for subsidiaries that together comprised the largest glass-manufacturing company in Mexico. Vitro borrowed approximately $1.2 billion with unsecured notes. The notes were guaranteed by Vitro’s subsidiaries. When Vitro’s business declined, it entered into reorganization negotiations with its creditors. Vitro eventually filed for bankruptcy in Mexican court and proposed a reorganization plan. The reorganization plan proposed to extinguish the unsecured notes and discharge the subsidiaries’ guarantees. The subsidiaries were not debtors in the proceedings. Under the plan, new notes would be issued with different terms. The plan was approved by 50 percent of Vitro’s unsecured creditors, but only because Vitro’s subsidiaries held more than half of all voting claims in the form of intercompany debt. A bankruptcy court in the United States denied enforcement of the reorganization plan because the plan would extinguish the obligations of the nondebtor subsidiary guarantors. Vitro appealed.
Rule of Law
Issue
Holding and Reasoning (King, J.)
What to do next…
Here's why 787,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 46,200 briefs, keyed to 988 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.
