Pittsburgh Glass Works (PGW) and GTS Services LLC have both filed objections in the bankruptcy case of Vitro America and three other indirect Vitro subsidiaries, including Binswanger Glass.
While Ame…
Pittsburgh Glass Works (PGW) and GTS Services LLC have both filed objections in the bankruptcy case of Vitro America and three other indirect Vitro subsidiaries, including Binswanger Glass. While American Glass Enterprises, an affiliate of Sun Capital, emerged as the successful bidder to purchase the assets of Vitro America and Binswanger Glass during an auction last week, creditors PGW and GTS have filed objections “to the proposed cure amounts with respect to the assumption and assignment of certain executory contracts in connection with the contemplated sale of substantially all of the debtors“ assets to American Glass Enterprises LLC.” PGW alleges in its objection that in American Glass“s assumption and assignment notice, it lists Vitro America“s contract with PGW as a designated contract, with the proposed cure amount of USD 289,000 for its sales and distribution agreement with the company. However, PGW claims that if American Glass decides to assume the PGW contracts, “the amounts necessary to cure all existing pre-and post-petition payment defaults under the PGW sales and distribution agreement are substantially higher than the amounts scheduled by the purchaser…” As of 3 June 2011 PGW alleges that its existing receivable from Vitro totals approximately USD 1.8 million. The breakdown of the amount comes from a pre-petition claim of USD 4,501.93 prior to 30 November 2010; a gap period claim from 30 November 2010, through 5 April of USD 656,098.65; and a post-petition claim from April 6 to present of USD 1,101,350.45. Similarly, GTS, which is a part of PGW, claims in its objection that American Glass has listed cure amounts of USD 17,281 for its GlasPacLX eXpress Service, and USD 109,000 for its GlasPacLX Onlive Service Agreement dated 30 September 2009. GTS officials, however, claim a total cure amount of USD 242,288.93. The suggested cure amount is made up of a gap period claim of USD 179,584.60 and a post-petition claim of USD 62,704.33. Both objections are noted as “limited.” The legal spokesperson for PGW said the company is is hopeful that any issues related to the cure claim and the assumption of PGW contracts will promptly be resolved with the debtors and the purchaser without the need for litigation. They claim to have filed a limited objection in light of the rapid pace of the debtors“ sale process, and further reserves its rights to assert additional objections in the event the purchaser fails to timely remit the full cure claim in accordance with the bankruptcy code. The GTS objection includes similar language, and also was filed by by the same legal counsel. Both objections were filed 8 June 2011 in the U.S. Bankruptcy Court for the Northern District of Texas.