Vitro Reaches Agreements to End All Legal Actions in Mexico and the U.S. and Finalize Its Restructuring Process

 Vitro Reaches Agreements to End All Legal Actions in Mexico and the U.S. and
                      Finalize Its Restructuring Process

PR Newswire

SAN PEDRO GARZA GARCIA, Nuevo Leon, Mexico, March 4, 2013

SAN PEDRO GARZA GARCIA, Nuevo Leon, Mexico, March 4, 2013 /PRNewswire/ --
Vitro S.A.B. de C.V. (BMV: VITROA), hereinafter "Vitro" or the "Company,"
announced that it has entered into agreements that will enable the Company to
definitively conclude its restructuring process. The agreements will end all
litigation between Vitro and certain creditors in Mexico and the United States
("U.S.") over the past two years, allowing Vitro to conclude its

The Company is confident that these agreements position Vitro to create more
value for all its stakeholders, including employees, suppliers, creditors and
shareholders, and in particular its customers, especially those in the U.S.
Specifically, the agreements are a settlement agreement between Vitro and
certain non-consenting creditors and other parties, and a separate agreement
between Vitro and its financial partner, Fintech.

"These agreements allow us to close the book on a challenging period for our
Company, and focus entirely on our business and meeting our customers' needs,"
said Adrian Sada Gonzalez, Vitro's Chairman of the Board of Directors. He also
commented, "Thanks to the valuable participation of our directors and the
strong support of Fintech and its Director, David Martinez, we have reached a
satisfactory conclusion in this matter and are ready to take advantage of the
extraordinary opportunities that exist today for Vitro."

David Martinez said, "The financial restructuring of Vitro's indebtedness has
achieved its objective of creating low and sustainable leverage after a decade
of high debt levels. We are excited to participate as a financial partner in
this new stage and are fully confident that under the leadership of Adrian
Sada and its focused management, the Company will capitalize on its
outstanding growth prospects, including those in the North American market."

The Company looks forward to executing its strategic plan for growth
internationally, primarily in the U.S., which in 2012 accounted for sales of
approximately US$446 million a year – US$329 million for packaging and US$117
million in flat glass –, as well as focusing on strengthening customer
relationships and seeking new business opportunities abroad.

"Once we implement these agreements, the Board's mandate is clear: focusing on
developing business lines, maintaining the healthy financial profile we have
achieved and generating long-term value for our shareholders," said Hugo A.
Lara Garcia, Vitro's CEO.

The key terms of the settlement agreement are as follows:

1.Fintech will purchase from the members of the Ad Hoc Group all of their
    holdings of bonds and pay to the Indenture Trustees and the Ad Hoc Group
    members an amount to cover fees, costs, and expenses incurred by the
    Indenture Trustees and the Ad Hoc Group members.
2.Certain of the settling parties have agreed to grant one another mutual
    releases, which cover, among other things, all claims related to the court
    proceedings and certain costs and fees.
3.The parties will consensually dismiss all suits, actions, appeals, and
    amparos between and among them in Mexico and in the United States.

The key terms of the agreement which was reached with Fintech are as follows:

1.Fintech will acquire the substantial majority of the bonds from the
    non-consenting creditors, will relinquish the legal actions against Vitro
    and its subsidiaries in the U.S. and Mexico associated with these bonds
    and will consent to the Concurso Plan that was approved by the Federal
    Courts of Mexico, in respect of these bonds and claims. These actions will
    increase the approval rate of such plan to almost 99% of the recognized
2.Vitro will cease collection actions in Mexico for costs and damages
    against the non-consenting creditors and drop the lawsuits it filed in the
    U.S., thus ending all legal proceedings against them; and
3.As consideration for the withdrawal of these awarded claims and for ending
    the associated legal proceedings related to the requests for involuntary
    bankruptcies in the U.S., Fintech will receive shares of a wholly owned
    subsidiary of Vitro, representing up to 13% of its equity (a participation
    that will be determined based upon its audited financial statements as of
    December 31, 2012), and a note for US$235 million with a two year
    maturity, which will be issued by such subsidiary.

Claudio Del Valle, Vitro's Chief Restructuring Officer, said "Fintech's
participation was crucial in order to establish the foundation for the
agreements we have reached. It provided a means by which the non-consenting
creditors could exit their positions, and allowed Vitro to gain a new partner
in Fintech which we are sure will add value to the Company, as Fintech shares
our vision for the business."

"We appreciate the support the Federal Government of the United Mexican States
has provided to Vitro in its restructuring," said Alejandro Sanchez Mujica,
Vitro's Executive Legal President and General Counsel.

The execution of the agreement with Fintech referenced in this release is
subject to relevant government approvals, and the authorization of the
different courts involved. The settlement agreement referenced in this release
is subject to the authorization of the courts in Mexico and the United States,
as well as certain other closing conditions.

Vitro, S.A.B. de C.V. (BMV: VITROA), is the leading glass manufacturer in
Mexico and one of the world's major glass companies, backed by more than 100
years of experience in the industry. Founded in 1909 in Monterrey, Mexico, the
company currently has subsidiaries in the Americas, which offer quality
products and reliable services to meet the needs of two different types of
business: glass containers and flat glass. Companies of Vitro produce,
process, distribute and market a wide range of glass articles which are part
of the daily life of thousands of people. Vitro offers solutions for multiple
markets including food, drinks, wines, liquors, cosmetics and pharmaceuticals,
as well as the architectural and automotive. The company is also a supplier of
raw materials, machinery and equipment for industrial use. As a socially
responsible company, Vitro implements various initiatives to contribute to
improving the quality of life of its employees, providing support to the
communities where it has presence, preserving the environment and favoring an
ethical and transparent management. For more information, please consult the

This announcement contains statements about future events regarding Vitro,
S.A.B. de C.V. and its subsidiaries. While Vitro believes that forward-looking
statements are based on reasonable assumptions, all such statements reflect
Vitro's current views with respect to future events and are subject to risks
and uncertainties that could cause actual results to differ materially from
those contemplated in this press release. Many factors could cause Vitro's
actual results, performance or achievements to be materially different from
anticipated future results, performance or achievements that may be expressed
or implied by such forward-looking statements. In particular, completion of
thetransactions described above or the Concurso Plan on the basis described,
or at all, is uncertain. Vitro does not assume any obligation to, and will
not, update these forward-looking statements.

For further information, please contact:

MEDIA                                        INVESTOR RELATIONS
MEXICO                                       MEXICO
                U.S.A.                                          U.S.A.
Roberto Riva                                 Jesus N. Medina
Palacio         Liz Cohen                                       Kay Breakstone /
                                             Vitro S.A.B. de
Vitro, S.A.B.   (212) 445-8044               C.V.               Barbara Cano
de C.V.
       + 52 (81)          (646) 452-2332 / 2334
+ 52 (81)                                    8863-1730

SOURCE Vitro S.A.B. de C.V.

Press spacebar to pause and continue. Press esc to stop.