Vitro to Miss Local Payment, Slapped with US Suit

Vitro was not planning to make yesterday’s MXP150m interest payment on local bonds, in order to preserve cash to continue operations. The Mexican glassmaker was meanwhile hit with an $85m lawsuit in New York from Credit Suisse, which alleges non-payment on derivative contracts. Vitro says it is analyzing its options regarding the lawsuit, and intends to hold discussions with local bondholders about a restructuring. It is doing the same with dollar bondholders and derivative counterparties. Earlier this week, Vitro announced that it would miss $45m in interest payments on 2012 and 2017 dollar bonds. Blackstone is advising Vitro on the restructuring.