Vitro SAB, the Mexican glassmaker, will try to convince a U.S. appeals court today that its restructuring should be enforced in the U.S. in a case deciding how closely a foreign bankruptcy must conform to U.S. law, Bloomberg News reported today. Elliott Management Corp. and other holders of Vitro’s $1.2 billion in defaulted bonds won a victory in June when Bankruptcy Judge Harlin Hale ruled that the Mexican plan was “manifestly contrary” to U.S. policy. Vitro appealed directly to the U.S. Court of Appeals, where a three-judge panel is set to hear arguments today. Vitro, which makes glass containers and car windshields, defaulted on $1.5 billion of debt in 2009, including $1.2 billion of bonds, after construction and auto-glass sales plunged during the U.S.'s worst recession since the 1930s. The company also incurred $340 million of derivative losses from bad bets on natural gas prices and currencies.
