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Vitro makes new Chapter 15 filing, seeks recognition of Mexican case
By Caroline Salls
Pittsburgh, April 15 - Vitro, SAB de CV filed Chapter 15 bankruptcy Thursday in the U.S. Bankruptcy Court for the Southern District of New York to gain U.S. recognition of its Mexican reorganization proceedings.
Vitro listed more than $1 billion of both assets and debt. As of Dec. 31, the company said it had a total of $1.710 billion of outstanding third-party consolidated debt.
As previously reported, Vitro made an earlier Chapter 15 bankruptcy filing in December after its Mexican case was filed under the Mexican Business Reorganization Act in the Federal District Court for Civil and Labor Matters for the State of Nuevo Leon.
However, that Chapter 15 case was withdrawn in January after judge Francisco Eduardo Flores Sánchez of the Fourth District Court for Civil and Labor Matters in the State of Nuevo León, Mexico, denied Vitro's request for a pre-packaged concurso proceeding on Jan. 7. That proceeding was the basis for the earlier Chapter 15 case.
Under its Mexican concurso plan, the company plans to restructure its notes by lowering principal and interest payments and extending the debt maturities.
Specifically under the plan, noteholders can exchange every $1,000 principal amount of restructured debt for $561 principal amount of new 2019 notes; $66 principal amount of new convertible obligations, which will convert into 15% of the company's equity interests if not paid in full at maturity; a share of a $75 million restructuring cash payment; and a share of a restructuring fee.
The company is represented by Milbank, Tweed, Hadley & McCloy LLP.
Vitro is a Nuevo Leon, Mexico-based glass manufacturer. The new Chapter 15 case number is 11-11754.
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