Vitro launches initial consent solicitation without noteholder support

By Caroline Salls

Pittsburgh, Nov. 10 - Vitro SAB de CV launched its initial restructuring consent solicitation last week without the support of a steering group of holders of the company's senior notes due 2012, 2013 and 2017 or any other independent creditor constituency, according to a steering group news release.

After its review of the initial consent solicitation, the steering group said it confirms that "the core economics are less favorable than terms offered by Vitro in recent meetings with certain steering group members.

The noteholders group said it has several concerns regarding the significant limitations and lack of creditor protections in the underlying documentation, and importantly, "Vitro makes use of several coercive incentives designed to intimidate noteholders into supporting this first draft of the initial consent solicitation."

All of these concerns present potentially adverse legal and economic implications to consenting noteholders, the release said.

The steering group said it is continuing to review all available options.

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

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