NEW YORK, Sept. 24, 2010 (GLOBE NEWSWIRE) -- TO ALL VITRO NOTEHOLDERS:
The Steering Group for the Ad Hoc Committee of Vitro Noteholders (the "Steering Group") is comprised of holders, or investment advisors to holders, of more than $500 million of the Senior Notes due 2012, 2013 and 2017 (collectively, the "Senior Notes") issued by Vitro, S.A.B. de C.V. ("Vitro"). In addition, its advisors continue to be in contact with additional holders of approximately $300 million of the Senior Notes, who have indicated their support for the Steering Group. The Steering Group would like to provide all holders of Senior Notes ("Noteholders") with an update with respect to the status of negotiations with Vitro and its shareholder representatives, regarding a comprehensive restructuring of Vitro's debt.
Despite a further attempt last week by members of the Steering Group to reach agreement on restructuring terms with Vitro and its formal and informal advisors (Rothschild and Fintech Advisory respectively), that attempt was once again unsuccessful. Vitro continues to demand concessions from creditors which produce an unacceptably poor economic outcome for Noteholders and are intended to transfer value away from the Noteholders to Vitro's shareholders and informal advisors.
The Steering Group expects that Vitro will launch a consent solicitation shortly (the "Consent Solicitation"), but despite claims by Vitro and its advisors to the contrary, the Company does not have the support of any member of the Steering Group nor any other Noteholder with whom we've been in contact. None of the Steering Group members nor its legal and financial advisors has had any involvement, or discussions, with respect to any associated legal or other documentation in connection with the Consent Solicitation, which is therefore unlikely to provide any of the covenants and other legal protections Noteholders would expect and will demand.
Certain of the Steering Group members are aware that Fintech Advisory has been advising Vitro's shareholders and its directors for some time and recently concluded the purchase of several derivative claims against Vitro previously owned by financial institutions. These claims (approximately $160 million) may have been validated by the Company, but Noteholders should not assume that support for a proposal from Fintech Advisory constitutes support from an independent creditor, despite anticipated suggestions from Vitro and its advisors otherwise.
We would urge all Noteholders to consult with our financial and legal advisors, as well as their own, before giving consideration to any Consent Solicitation.
Sincerely,
Steering Group for the Ad Hoc Committee of Vitro Noteholders
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