updated 10/26/2010 5:15:47 PM ET 2010-10-26T21:15:47

NEW YORK, Oct. 26, 2010 (GLOBE NEWSWIRE) -- 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 updatewith respect to the status of negotiations with Vitro and its shareholder representatives.


‪Vitro is shortly expected to launch its long-awaited consent solicitation ("Initial Consent Solicitation"). It has chosen to do so without the support of any member of the Steering Group, nor from any other independent creditor constituent. Assuming the Initial Consent Solicitation is launched on the terms that we have been led to believe by Vitro and its advisors, the Initial Consent Solicitation will offer an unacceptably poor economic outcome for Noteholders and as such, the Steering Group intends at this time, based upon available information, to reject the Initial Consent Solicitation and encourages all Noteholders to do the same.

We would draw Noteholders attention to two important considerations when reviewing the Initial Consent Solicitation:

First, as proposed, the economic terms are considerably less favorable than terms put forward by Vitro during recent meetings with certain Steering Group members. Further, the Steering Group understands that Vitro will incorporate various coercive incentives designed to intimidate Noteholders into supporting the Initial Consent Solicitation and will no doubt claim that it has widespread support among creditors.

Second, none of the Steering Group members, nor our financial and legal advisors, have had any involvement or participation with respect to the new debt indentures and associated legal or other documentation governing the proposed restructured securities. Both the Initial Consent Solicitation and the documentation have been drafted by Vitro with input only from its informal advisor, and future shareholder, Fintech, thus we expect that it will compromise the economic and legal position of the Noteholders.

Notwithstanding almost 18 months of patient negotiation, the Steering Group is surprised and disappointed at Vitro's decision to launch the Initial Consent Solicitation on terms worse than previously offered during discussions and without giving the Steering Group any opportunity to review and give input to the Initial Consent Solicitation documents. The Steering Group encourages all Noteholders to defer taking any action with respect to the Initial Consent Solicitation until they have had the opportunity to properly analyze the terms of the proposal and understand its potential legal and economic implications.

Accordingly, once the Initial Consent Solicitation is launched, the Steering Group and its advisors, White & Case LLP and Chanin Capital Partners LLC, will schedule and hold a conference call open to all Noteholders during which we will discuss the Initial Consent Solicitation and its consequences.

The foregoing shall not be construed as tax, legal, business, financial, accounting or other advice, and Noteholders are encouraged to consult their own advisors. The Steering Group reserves all of its rights and remedies available to it under law and contract.


Steering Group for the Ad Hoc Committee of Vitro Noteholders          

Care of

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved


Discussion comments


Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 3.79%
$30K home equity loan FICO 4.99%
$75K home equity loan FICO 4.69%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.83%
Cash Back Cards 17.80%
Rewards Cards 17.18%
Source: Bankrate.com