The U.S. Court of Appeals has granted a temporary restraining order while Vitro S.A.B. appeals a recent decision by the U.S. Bankruptcy Court for the District of Northern Texas not to enforce the company’s Mexican reorganization plan in the U.S.
The U.S. Court of Appeals for the Fifth Circuit has granted a temporary restraining order (TRO) while Vitro S.A.B. appeals a recent decision by the U.S. Bankruptcy Court for the District of Northern Texas not to enforce the company’s Mexican reorganization plan in the U.S. The court has ordered that, “the temporary restraining order entered by the bankruptcy court shall remain in place during the pendency of this appeal or until further order of this court.” The court had previously granted a stay for the pending expiration of the TRO at Vitro’s appeal, which was scheduled to occur at 5 p.m. on June 29, but this ruling extends it even further. The TRO prohibits Vitro’s creditors “from taking actions to enforce judgments against Vitro SAB and its non-debtor affiliates,” according to a previous motion from Vitro seeking the enforcement of the TRO.
Absent the TRO, Vitro will be expected to somehow comply with conflicting orders issued by a court in the United States and a court in Mexico and Vitro and its subsidiaries, and their customers, would be exposed to suits by the appellees across several courts in the United States. Without the TRO, Vitro officials allege that the company’s creditors would begin “turnover proceedings against Vitro customers,” as they did before the TRO was entered in March. Vitro’s brief in the appeal case is due to the court by August 30.