Vitro to Miss Coupons, Gets Chopped

S&P has lowered Vitro, to D from CC, following Fitch’s downgrade of the credit to C from CC on Friday. The moves are prompted by the glassmaker’s decision not to make coupon payments due this coming Monday. Although the notes allow a 30-day grace period, the company has indicated that it does not intend to make scheduled interest payments $12.9m on its 8.625% 2012 bonds, and $31.9m on its 9.125% 2017s. Vitro has also been served notice of default by derivative counterparties demanding $293m in payments. Blackstone, Vitro’s adviser, told bondholders last week to organize and seek legal counsel. The outstanding bonds potentially in default total about $1.2bn. Fitch expects to cut Vitro to D following the end of the grace period.