Vitro Issues CLN Notes

Vitro has issued credit-linked securities (CLNs) to creditors in compliance of its obligations under a February 3 restructuring agreement approved by Mexico’s Fourth District Court, it says. The CLN securities are issued by trusts and linked to Vitro’s new 8.0% notes due 2018, 12% mandatory convertible debentures (MCDs) due 2015 – which are mandatorily convertible into 20% of Vitro’s equity if not paid in full at maturity. Banco Invex, Institucion de Banca Multiple, Invex Grupo Financiero are the trustees, which in turn will issue the CLNs to creditors. The glassmaker also announced it paid its restructuring fees. The company’s restructuring proposal includes $814.7m in new bonds, a fee of up to $32.7m and mandatory convertible debt of $95.8m. The CLNs and restructuring fee payment involve the substitution and termination of previous obligations, instruments, securities agreements and guarantees under which the recognized credits in Vitro’s Concurso Mercantil, it adds.