Vitro plans to launch restructuring consent solicitation in August

By Caroline Salls

Pittsburgh, July 21 - Vitro SAB de CV said members of its finance and planning committee have met with representatives of an informal bondholder committee to present a revised counterproposal and outline their plans for reaching a consensual restructuring agreement.

According to a company news release, the cornerstone of Vitro's consensual approach to the market is a broad creditor outreach effort in the form of a consent solicitation for a debt restructuring.

The company said it expects that it will be in a position to formally launch the consent by early August.

Vitro said it believes that the consent will assure the medium-term and long-term sustainability of the company, significantly enhancing the worthiness of its restructured debt.

In addition, Vitro said it believes that the proposed consent represents a higher recovery than the average market price for the last six months of the senior notes due 2012, 2013 and 2017.

The company said it plans to continue negotiations to secure bondholder support of the consent ahead of its launch.

As previously reported, Vitro's $216 million outstanding principal amount of senior notes due 2013 were accelerated in April.

Vitro said at that time that it was focusing its efforts on reaching a consensual restructuring agreement with creditors based on its debt capacity.

The company said it expected the acceleration notice, and it could not impact Vitro's ability to continue normal operations while continuing the negotiation process with bondholders.

Vitro is a Nuevo Leon, Mexico-based glass manufacturer.

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