Vitro units ordered to withdraw consent to restructuring plan

Vitro subsidiaries have been ordered to withdraw consent to a restructuring plan, a ruling which was also confirmed by a spokesman from the Group.

Units of Mexican glassmaker Vitro SAB, that defaulted on USD 1.5 billion of bonds, were ordered by a New York judge to withdraw consent to a restructuring plan in a Mexican bankruptcy court.
The subsidiaries are, according to the ruling, “directed to withdraw their consent to any plan reorganization of Vitro that purports to release the guarantees, to take such other actions as may be required to give effect to such withdrawal”.
A copy of the decision by New York Supreme Court Justice Bernard J. Fried was provided by Dennis Hranitzky, an attorney for ad hoc noteholders opposing the restructuring plan, who declined to comment on the ruling.
The ruling was confirmed by Roberto Riva Palacio, a Vitro spokesman, in an E-mail. Vitro “is not in agreement and, as such, we will exercise our right to challenge it,” he wrote.
The restructuring proposal presented to a judge in Monterrey, Mexico, by the court-appointed arbitrator, would include USD 814.6 million of new bonds maturing in 2019 with an interest rate of 8%, and USD 95.8 million of debt convertible to shares with an interest rate of 12%.
On 19 October, disagreeing creditors presented a restructuring plan to the arbitrator proposing USD 1.1 billion of new bonds, a cash payment of 10% of the outstanding principal of existing notes and a 61% stake in common shares of Vitro.

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