Vitro Readies Bankruptcy

Vitro plans to file for bankruptcy through Mexico’s concurso mercantil process by December 16, it says. The Mexican glassmaker has “has the requisite majority, among debt controlled by Vitro, debt subject to lock-up agreements and consents received through the exchange offer and consent solicitation, to accomplish a prearranged concurso mercantil,” it says. Vitro also is extending the deadline of the bond portion of its debt exchange offer to December 21. The cash portion of the offer has expired, with holders of $30m having accepted, and a $575 per $1,000 principal clearing price established. In the note exchange portion, which is still open, Vitro is offering – for each $1,000 principal – $562 in new 8.000% of 2019 bonds, $66 in 10.500% of 2015 mandatorily convertible debentures, and a cash payment equal to accrued interest. An additional cash payment would come from any funds left in a trust used for a cash buyback that remains after the repurchase is complete. Vitro said at the time of launch that creditors could expect a 68%-73% recovery. Rothschild is Vitro’s financial advisor on the process. A bondholder group calling itself the Ad Hoc Group of Vitro Noteholders claims to represent holders of $650m in the Mexican glassmaker’s bonds and opposes the offer.