Bankruptcy Partner Madlyn Primoff Discusses Mexican Company’s Restructuring Appeal in Bloomberg
Bloomberg recently reported on Mexican glassmaker Vitro SAB’s appeal to have its reorganization enforced in the US. The plan was previously approved in Mexico but rejected in US bankruptcy court due to its disregard for the claims of bondholders against Vitro affiliates that guaranteed the debt despite said affiliates not being in bankruptcy. The bondholders have argued that this is not permitted by US law and that the process of approval in Mexican court was unfair and corrupt.
According to Kaye Scholer Bankruptcy & Restructuring Partner Madlyn Gleich Primoff, the result of Vitro’s appeal will “help determine the boundaries on what is permissible in a foreign reorganization that seeks recognition in the US.”
“This goes much farther than US law,” Primoff continued. “The question is whether it goes so far that it’s manifestly contrary to US public policy.”