A group of Vitro SAB debt holders are seeking involuntary reorganization proceedings against the Mexican glassmaker, saying investors representing most of its senior notes have agreed not to accept a restructuring offer.
Some members of the group, which holds a total of $700 million in senior Vitro notes, are seeking the reorganization in Mexico of Vitro and its Mexican subsidiaries that are guarantors of the debt, the debt holders said today in a statement. The group holds almost 60 percent of Vitro’s senior notes, the statement said.
Albert Chico, a spokesman for Vitro, declined to comment.
Today is Vitro’s deadline for bondholders to participate in its offer of $850 million of new bonds and $100 million of debt convertible to shares in exchange for $1.5 billion of debt in default. The company said last month it would ensure creditors approved the offer by voting $1.9 billion of its intercompany loans in favor of the deal.
Thomas Lauria, a Miami-based partner at White & Case LLP, which represents the debt-holder group, said Nov. 29 that intercompany debt held by subsidiaries cannot be used to vote on restructuring proposals.
Vitro said Nov. 23 it planned to take the debt offer to Mexican bankruptcy court after today’s deadline for bondholders to participate. The company, based in Monterrey, Mexico, said then it had the required majority support of creditors to implement the plan.