Vitro involuntary debtors' demand for noteholder disclosure denied

By Caroline Salls

Pittsburgh, July 7 - A motion filed by the former alleged debtors in the involuntary bankruptcy cases filed against Vitro, SAB de CV's U.S. subsidiaries to bar an informal noteholders' group from participating in the involuntary cases until it provides required claims and membership information was denied Thursday by the U.S. Bankruptcy Court for the Northern District of Texas.

Judge Harlin DeWayne Hale said in Thursday's order that the members of the noteholders' group "are a collection of individual holders of Vitro notes who have voluntarily chosen to further their common interests and share the cost of counsel."

The judge said the noteholders do not represent the interests of others who have not been disclosed to the court, and they do not claim to represent the votes of creditors other than themselves in connection with a proposed plan of reorganization.

In their motion, the Vitro debtors said that the noteholder group has acknowledged that it is required to provide details of the full composition of the group, each member's interest in the notes, the timing of each member's notes acquisition and the price paid for the notes, any sales of the notes and the instruments granting the group to represent its members and other noteholders.

Vitro is a Nuevo Leon, Mexico-based glass manufacturer. An involuntary bankruptcy case was filed against its U.S. subsidiaries on Nov. 17, 2010. An order of relief was entered for some of the subsidiaries on April 6, and they have since been operating as debtors-in-possession. The Chapter 11 case number is 11-32600.

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