Creditors Rebuff Vitro Proposal

Vitro has revealed that creditors turned down its $1.26bn restructuring proposal submitted last month. The Mexican glassmaker said it will continue to seek a consensual agreement with creditors, and hopes to launch a new offer “in the coming days.” The most recent offer involved issuing three series of new bonds plus a $75m cash payment. The new debt consisted of$500m 8-year bonds paying 3% and increasing 100bp per year, $350m in amortizing 7-year bonds paying 3% the first year, 4% in the second and 8% in subsequent years, and $80m in 10.5% 5-year convertible notes that are automatically swapped into shares if they haven’t been paid down by maturity. About $275m in guaranteed debt, accounts receivable obligations, and other debt wouldn’t have been affected by the proposal, Vitro says.