Vitro S.A.B. de C.V. announced on 4 January 2010 that it received, from a group of its bondholders, a Notice of Acceleration of payment for the Senior Notes due 2012 (the “2012 Notes”) and the Senior …
Vitro S.A.B. de C.V. announced on 4 January 2010 that it received, from a group of its bondholders, a Notice of Acceleration of payment for the Senior Notes due 2012 (the “2012 Notes”) and the Senior Notes due 2017 (the “2017 Notes” and together with the 2012 Notes the “Senior Notes”). The notice was delivered to the company and to the Bank of New York, as trustee of the 2012 Notes and the 2017 Notes. As per Vitro“s Indentures for these Senior Notes, a minority group of at least 25% of the bondholders may request the Notice of Acceleration, which is considered a standard operating procedure when an issuer is in default. The Notices received by the company did not contain information as to whether the signatories hold 25 or more of each of the relevant Senior Notes; therefore, the company is requesting further information from the signatories regarding their holdings. The outstanding principal amount of the Senior Notes, as of today is USD 1 billion dollars. The company has not received any notice of acceleration with regard to its other public senior notes, which are due in 2013, in the outstanding principal amount as of today of USD 216 million (“2013 Notes”). This Acceleration was anticipated by the company and does not in any way impact Vitro“s ability to continue to operate in the normal course. As previously announced, recent real estate transaction and the refinancing of a trade receivable programme have increased Vitro“s unrestricted cash position to more than USD 175 million dollars as of 31 December 2009. These liquidity enhancements were implemented to further strengthen Vitro“s operations while continuing serving its clients with high quality products. Vitro remains focused on its balance sheet restructuring efforts and will continue its negotiations with its bondholders. The company remains firmly committed to a restructuring process that will resolve its balance sheet challenges.