Creditors File Petition for Bankruptcy Against
Vitro U.S. Subsidiaries
Four Vitro creditors, unhappy with a recent debt settlement
offer, filed a petition for involuntary bankruptcy on November 17 against
15 of the company’s U.S. subsidiaries, including Vitro America, according
to court documents.
The noteholders own approximately $75 million (about 6 percent), of the
Mexico-based company’s debt.
According to a statement issued by Vitro S.A. B. de C.V., it had “commenced
a tender offer, exchange offer and consent solicitation in connection
with its anticipated prepackaged Concurso plan in Mexico” on November
However, in a statement issued later by the noteholders involved in the
filing, the creditors “believe that Vitro’s solicitation does not offer
adequate consideration to the noteholders.”
“We believe Vitro’s plan significantly undervalues the company, undercounts
the amount and ratable portion of the noteholders’ claims, and inappropriately
redistributes value away from noteholders to Vitro’s shareholders and
insiders,” wrote the creditors in the statement.
Vitro chief restructuring officer Claudio Del Valle, however, is optimistic
that the situation will be resolved, according to a company statement.
Vitro officials say the court has made several decisions in its favor,
including the denial of a motion by the bondholders who filed the case
seeking to restrict the U.S. subsidiaries’ ability to enter into transactions
with their non-U.S. affiliates or participate in Vitro SAB’s planned restructuring
and concurso proceeding in Mexico. In addition, the court has approved
a motion by Vitro’s U.S. subs for continued financing with their lender,
Bank of America, and granted in part a motion authorizing the U.S. subsidiaries
to obtain additional financing from their ultimate parent, Vitro SAB,
according to the company.
In the meantime, it is “business as usual” for Vitro America, according
to president Arturo Carrillo. “Consistent with applicable law, the company
will continue to operate its business in the ordinary course, with full
authority to fulfill its contractual and financial obligations,” Carrillo
As for employees, they should remain unaffected as well, Carrillo says.
“We currently have no layoffs planned and intend to continue paying our
employees’ wages, salaries and benefits in the ordinary course.”
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