NEW YORK, Nov. 22, 2010 (GLOBE NEWSWIRE) -- The Ad Hoc Group of Vitro Noteholders (the "Ad Hoc Noteholder Group") is comprised of holders, or investment advisors to holders, which represent approximately $650 million of the Senior Notes due 2012, 2013 and 2017 (collectively, the "Senior Notes") issued by Vitro S.A.B. de C.V. ("Vitro"). The Ad Hoc Noteholder Group also has been engaged in discussions with other Noteholders who hold in excess of $100 million of Senior Notes, who have confirmed that they oppose and are not participating in the Consent Solicitation and Exchange Offer dated November 1, 2010 (the "Solicitation").
As previously announced, the Ad Hoc Noteholder Group opposes Vitro's proposed Concurso restructuring and has determined not to tender their notes because, among other things, it does not provide an appropriate economic recovery for holders of Senior Notes (the "Noteholders"). In addition, the Ad Hoc Noteholder Group believes that the exchange offer exposes Noteholders who consent to potential adverse consequences that have not been disclosed by Vitro.
In the event that Vitro waives the conditions of its Solicitation, which Vitro is entitled to do, the Ad Hoc Noteholder Group believes that any consenting Noteholder could be forced to take the new notes offered in the Consent Solicitation, regardless of whether Vitro files or completes its proposed Concurso plan in Mexico. If Vitro were to pursue this option, Noteholders that do not give their consent in the Solicitation would keep their original Senior Notes with their original terms, while consenting Noteholders could receive the consideration offered in the Solicitation, which includes substantially inferior terms to the Senior Notes.
Even if Vitro did not exercise its option to waive all conditions to the Solicitation, Noteholders may be tied up indefinitely if they act to accept the Solicitation. The Solicitation generally does not provide Noteholders with withdrawal rights unless Vitro fails to file its Concurso plan in Mexico prior to December 31, 2010. The Ad Hoc Noteholder Group believes that Noteholders who give their consent in the Solicitation may not be able to sell or trade Senior Notes prior to the completion of the Concurso plan in Mexico, if and when this occurs.
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
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