Vitro Rallies on Restructuring Proposal

In the next step with creditor negotiations, Mexican glassmaker Vitro proposes to offer bondholders $660m in new 8-year bonds in exchange for $1.5bn in existing debt. Additionally the glassmaker plans to give creditors 20 cents for every dollar of Ebitda it generates over a $250m annual threshold. Its previous proposal called for $100m less of new bonds and offered no additional payment linked to cashflow. Vitro defaulted last year as the global recession whacked revenue and the company suffered more than $300m in derivative losses. Vitro received an acceleration notice in January for its $1bn in 2012 and 2017 bonds. Vitro A stock rallied 4.73% Tuesday to close at MXP8.85.