A bankruptcy court on Wednesday rejected a part of a restructuring of debt of the Mexican glass manufacturer Vitro, which had been endorsed by the Justice of Mexico. However, this has been rejected by some American mutual funds.
Vitro, which sought protection from its creditors in 2010 after heavy losses on derivative instruments, has been embroiled in a lengthy legal battle to push its restructuring plan.
The spokesman for Vitro, Roberto Riva, said the company will appeal the decision.
“Financial restructuring in Vitro is consistent with Mexican law, constantly recognized and respected in America,” Riva said in a statement.
The court gave a deadline of June 29 for the company to present its stance before deliberating on its merits.
The Mexican company claims that the debt to its subsidiaries is higher than what they owe to their foreign creditors, and on that basis, claims to have the support needed to implement the plan in order to turn things around for the better.
But some creditors oppose the inclusion of Vitro in the process of debt restructuring, including its subsidiaries.
Earlier this year, the Mexican justice system submitted the plan by the company to restructure 1.5billion of debt held by foreign creditors and various institutions.