Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Vitro Units Ordered to Withdraw Consent to Restructuring Plan

Units of Vitro SAB, the Mexican glassmaker that defaulted on $1.5 billion of bonds, were ordered by a New York judge to withdraw consent to a restructuring plan in a Mexican bankruptcy court.

The subsidiaries are “directed to withdraw their consent to any plan reorganization of Vitro that purports to release the guarantees, to take such other actions as may be required to give effect to such withdrawal,” according to yesterday’s ruling.

A copy of the decision by New York Supreme Court Justice Bernard J. Fried was provided by Dennis Hranitzky, an attorney for ad hoc noteholders opposing the restructuring plan. He declined to comment on the ruling.

Roberto Riva Palacio, a Vitro spokesman, confirmed the ruling in an e-mail. Vitro “is not in agreement and as such we will exercise our right to challenge it,” he wrote. The ruling couldn’t be independently confirmed with the court after regular business hours yesterday.

The restructuring proposal presented to a judge in Monterrey, Mexico, by the court-appointed arbitrator would include $814.6 million of new bonds maturing in 2019 with an interest rate of 8 percent and $95.8 million of debt convertible to shares with an interest rate of 12 percent.

Consenting creditors would probably get securities and cash with a recovery on current face value of 47.6 percent to 60 percent, depending on how many holders agree, Jacob Steinfeld, a JPMorgan Chase & Co. analyst in New York, said in a Nov. 7 note. Non-consenting creditors would recover less, he said.

Dissenting creditors on Oct. 19 presented a restructuring plan to the arbitrator proposing $1.1 billion of new bonds, a cash payment of 10 percent of the outstanding principal of existing notes and a 61 percent stake in common shares of Vitro, based in San Pedro Garza Garcia, Mexico.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.