Ad Hoc Group of Vitro Noteholders v. Vitro, S.A.B. de C.V. (In re Vitro, S.A.B. de C.V.)

470 B.R. 408, 2012 WL 1533911, 2012 U.S. Dist. LEXIS 60664
CourtDistrict Court, N.D. Texas
DecidedMay 1, 2012
DocketBankruptcy Case No. 11-33335-HDH-15; Civil Action No. 3:11-CV-2888-G
StatusPublished
Cited by14 cases

This text of 470 B.R. 408 (Ad Hoc Group of Vitro Noteholders v. Vitro, S.A.B. de C.V. (In re Vitro, S.A.B. de C.V.)) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ad Hoc Group of Vitro Noteholders v. Vitro, S.A.B. de C.V. (In re Vitro, S.A.B. de C.V.), 470 B.R. 408, 2012 WL 1533911, 2012 U.S. Dist. LEXIS 60664 (N.D. Tex. 2012).

Opinion

MEMORANDUM OPINION AND ORDER

A. JOE FISH, District Judge.

Before the court is an appeal from the bankruptcy court’s order granting recognition of a foreign main proceeding. For the reasons set forth below, the bankruptcy court’s order is affirmed.

I. BACKGROUND

This bankruptcy appeal deals with recognition of a foreign bankruptcy proceeding under Chapter 15 of the Bankruptcy Code. The appellee, Vitro, S.A.B. de C.V. (“Vitro”), is a Mexican holding company; its subsidiaries jointly constitute one of the largest glass manufacturers in the world. Brief of Appellant the Ad Hoc Group of Vitro Noteholders (“Appellant’s Brief’) at 2, 4 (docket entry 18). The appellant, the Ad Hoc Group of Vitro Noteholders (“the Noteholders”), consists of entities which [410]*410have beneficial interests in certain debt instruments issued by Vitro and guaranteed by its subsidiaries. Id. at 2.

At a board meeting on October 29, 2010, Vitro appointed Alejandro Sanchez-Mujica (“Sanchez-Mujica”) to be its “foreign representative” in its anticipated bankruptcy filing. Id. at 6. On December 13, 2010, Vitro filed a voluntary petition for reorganization — known as a “concurso mercan-til” petition — in a Mexican court. Id. at 7. Vitro subsequently filed a petition under Chapter 15 in the United States to recognize the Mexican proceeding. Id. at 8.

The Noteholders objected to Vitro’s petition on a number of grounds, including on the basis that Sanchez-Mujica could not be a foreign representative because he , was not allowed to leave Mexico. Id. at 9. In response, Vitro appointed Javier Arecha-valeta Santos (“Arechavaleta”) to be, with Sanchez-Mujica, a “co-foreign representative” of Vitro. Id.

On July 14, 2011, the bankruptcy court held an evidentiary hearing in this case. Id. at 9. On July 21, 2011, the bankruptcy court filed an order recognizing the Vitro foreign main proceeding. Order on Petition for Recognition of Foreign Main Proceeding (“Bankruptcy Order”) at 1^1 (bankruptcy docket entry 137). The Note-holders then filed the instant appeal.

II. ANALYSIS

A. Legal Standard

Under Chapter 15 of the Bankruptcy Code, a debtor in a foreign bankruptcy proceeding may petition a court for “recognition” of the foreign proceeding. See generally 11 U.S.C. § 1501 et seq. Under 11 U.S.C. § 1515, this petition is filed by a foreign representative. If the petition is not accompanied by certain documents, it must contain “evidence acceptable to the court of the existence of such foreign proceeding and of the appointment of the foreign representative.” 11 U.S.C. § 1515(b)(3). A court shall enter an order recognizing a foreign proceeding only if three requirements are met. First, “such foreign proceeding for which recognition is sought is a foreign main proceeding or foreign nonmain proceeding within the meaning of section 1502.” Id. § 1517(a)(1). Second, “the foreign representative applying for recognition is a person or body.”

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Cite This Page — Counsel Stack

Bluebook (online)
470 B.R. 408, 2012 WL 1533911, 2012 U.S. Dist. LEXIS 60664, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ad-hoc-group-of-vitro-noteholders-v-vitro-sab-de-cv-in-re-vitro-txnd-2012.