Vitro's Bankruptcy Plan Rejected by Mexico Judge, Glassmaker Plans Appeal
Vitro SAB, the Mexican glass maker that defaulted on $1.2 billion of dollar bonds in 2009, said a Mexican judge rejected a bankruptcy plan the company filed in a Monterrey court.
The Monterrey-based company plans to appeal the judge’s decision to dismiss the petition for bankruptcy, Vitro said in an e-mailed statement.
The judge, Francisco Flores of the federal district court in Monterrey, in December accepted an involuntary bankruptcy petition from a group of creditors that said it represents holders of $700 million of the bonds.
Vitro submitted to the Mexican court a plan that was voted down by a majority of bondholders in December. The company said it had majority support for the proposal after including the votes from $1.9 billion of intercompany debt.
In the plan, Vitro offered $850 million of new bonds and $100 million of debt convertible to shares in exchange for $1.5 billion of defaulted debt, including the dollar bonds, Mexican peso bonds, debt from derivative losses and other liabilities.
The group of bondholders that filed for involuntary bankruptcy in Mexico also filed bankruptcy against Vitro in a Texas court.
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