In 2009, the federal government stripped holders of General Motors and Chrysler bonds of their legal rights in a reorganization that instead gave hefty benefits to the United Auto Workers.

FORBES: Move up http://i.forbesimg.com t Move down

Hale, in a 29-page ruling issued late yesterday, said it would undermine U.S. policy to allow Vitro, which is in reorganization proceedings in Mexico, to deprive foreign creditors of guarantees from solvent subsidiaries that back its bonds.

FORBES: Judge Halts Vitro's Attempt To Erase Debt Guarantees