Vitro Says No Immediate Plan to File

Mexico’s Vitro is not aiming to file for bankruptcy at the moment, says a company official. The glassmaker has not made any statement indicating how it plans to handle its restructuring, notes the official, adding a concurso mercantil, the Mexican equivalent to Chapter 11, is not among the leading options being considered. Vitro has hired Milbank Tweed as legal counsel and Blackstone as its financial advisor, while its bondholders have engaged White & Case for legal and Perella Weinberg for advice on financial matters. A banker away from the process says Vitro is also considering bringing in an equity investor to help capitalize the cash strapped company. Last week, Vitro missed coupon payments on its 2012 and 2017 bonds, saying a downturn in the economy and a debilitating derivatives hit has compromised its ability to service debt. It still has outstanding negative derivative positions with a number of investment banks, including Credit Suisse, according to a company official. It must also address discussions with those counterparties in the coming weeks. “The company has pledged full cooperation with the bondholders and says it is willing to sit down and discuss this,” says an executive representing a group of investors.