updated 12/7/2010 7:47:58 PM ET 2010-12-08T00:47:58

NEW YORK, Dec. 7, 2010 (GLOBE NEWSWIRE) -- The Ad Hoc Group of Vitro Noteholders, which is comprised of holders of approximately $700 million of the Senior Notes issued by Vitro S.A.B. de C.V. ("Vitro"), announced today that certain of its members have filed requests for injunctions and petitions seeking the opening of involuntary reorganization proceedings in Mexico against Vitro and its Mexican subsidiaries that are guarantors of the Senior Notes. The petitions were filed last week, pending determination by the presiding court of certain preliminary matters raised by the petitioning creditors, who are being represented in the actions by Jaime R. Guerra Gonzalez and Jesus Angel Guerra Mendez of Guerra Gonzalez y Asociados, S.C.

Vitro has been in default on its Senior Notes and has not made payment thereon for nearly two years. Negotiations for a consensual restructuring between Vitro and the Ad Hoc Noteholder Group broke down in the fall. Vitro then commenced solicitation of votes on an exchange offer that had not been agreed to by the Ad Hoc Noteholder Group and did not provide for the payment in full of Vitro's unsecured debts, including the Senior Notes, despite leaving in place Vitro's current shareholders. Shortly thereafter, Vitro announced its intention to impose the deal on its noteholders, even if they rejected it, by causing over $1.9 billion of intercompany claims (substantially all of which were reportedly created within the past year, according to Vitro) to vote to accept the deal. According to Vitro, such insider voting would make the unsecured class an accepting class even if a majority of noteholders rejected it.

The Ad Hoc Noteholder Group has consistently announced its opposition to the deal and has confirmed that its members, who hold or are advisors to holders of nearly 60% of Vitro's Senior Notes, have agreed not to accept the proposed exchange. A subset of the group commenced involuntary U.S. bankruptcy cases in November against Vitro's U.S. subsidiary guarantors. The presiding judge has ordered the U.S. subsidiaries to provide discovery to the noteholders on an expedited basis.

The foregoing shall not be construed as tax, legal, business, financial, accounting or other advice, and noteholders are encouraged to consult their own advisors.


Ad Hoc Noteholder Group

CONTACT: White & Case LLP
         John Cunningham
           (305) 995-5252
         Richard Kebrdle
           (305) 995-5276

© 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