Vitro: US court rejects freezing assets

Mexican glassmaker Vitro reported on 29 November that a US court has rejected a request from bondholders to freeze assets and allow the bankruptcy of its US units.
The request was designed to restric…

Mexican glassmaker Vitro reported on 29 November that a US court has rejected a request from bondholders to freeze assets and allow the bankruptcy of its US units. The request was designed to restrict the units“ capacity to make transactions outside the US or to take part in Vitro“s Mexican debt restructuring. According to the statement released by the company, the US court ruled the company“s Vitro America division could continue to take on debt via Bank of America. Monterrey-based Vitro aims to exchange USD 1.216 billion of bonds that expire in 2012, 2013 and 2017 in an offer scheduled to close on 7 December. Four investment funds, part of an ad hoc group of noteholders holding about USD 75 million of Vitro“s notes, who say the exchange would not give them a fair payment for their debt, filed the request with a US bankruptcy court in the Northern District of Texas. Vitro has accused the funds of “misleading statements” and defends its restructuring plan. Vitro was caught out in late 2008 when the global credit crisis threw Mexico“s peso into a free-fall, which led to big losses in currency derivatives that many investors were not aware of.