Feb 7 (Reuters) - A Mexican court has approved glassmaker Vitro’s restructuring plan, more than a year after the company first put the $3.4 billion plan to creditors.
The restructuring plan was previously approved by a majority of Vitro’s creditors, but this had been disputed in courts by the company’s U.S.-based lenders who argued Vitro should not be allowed to use its subsidiaries’ debt in the approval process.
Under Mexico’s bankruptcy law, subsidiaries’ debt is included in the bankruptcy proceedings, and on that basis Vitro had the majority of votes needed to proceed with its restructuring plan.
The U.S. creditors will likely fight the ruling, but the company is confident it will win in the long run, Claudio Del Valle, Vitro’s chief restructuring officer, said in a statement.
A Monterrey-based court made the ruling on Friday and it was published on Tuesday.
Vitro, which makes everything from beer bottles to perfume containers for luxury brands, struggled to repay its borrowings, hampered by losses on derivatives and a drop in business triggered by the global recession.