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.
NEW YORK, Nov. 10, 2010 (GLOBE NEWSWIRE) -- TO ALL VITRO NOTEHOLDERS:
As anticipated, Vitro launched its consent solicitation (the "Initial Consent Solicitation") last week, without the support of the Steering Group nor any other independent creditor constituent of whom we are aware. After our review of the Initial Consent Solicitation, we confirm that (i) the core economics are less favorable than terms offered by Vitro in recent meetings with certain Steering Group members, (ii) we have several concerns regarding the significant limitations and lack of creditor protections in the underlying documentation, and importantly, (iii) Vitro makes use of several coercive incentives designed to intimidate Noteholders into supporting this first draft of the Initial Consent Solicitation; all which have potentially adverse legal and economic implications to consenting Noteholders.
The Steering Group encourages each Noteholder to defer taking any action with respect to the Initial Consent Solicitation until such Noteholder has had the opportunity to properly analyze the terms of the proposal and understand its potential legal and economic implications.
At this time, the Steering Group continues to review all available options and reserves all of its rights and remedies available to it under law and contract.
The foregoing shall not be construed as tax, legal, business, financial, accounting or other advice, and Noteholders are encouraged to consult their own advisors.
Sincerely,
Steering Group for the Ad Hoc Committee of Vitro Noteholders
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