Feb. 21 (Bloomberg) -- Vitro SAB, the Mexican glassmaker that defaulted on $1.5 billion of bonds in 2009, rose to the strongest level since June 2008 as the company moves ahead with its restructuring plan.
Vitro rose 8.4 percent to 17.34 pesos at the close in Mexico City, posting its fifth straight day of gains. It has soared 20 percent since Feb. 14. Today was stock’s highest closing level since June 30, 2008.
The company said on Feb. 7 that a Mexican judge gave approval for it to restructure defaulted debt over the objections of U.S. creditors who said it was unfair for $1.9 billion of intercompany loans that Vitro created after the default to be included in a vote on the refinancing plan. Noteholders, including Elliott Management Corp., had argued that the inclusion of intercompany debt let Vitro dictate terms.
The stock is rising after some of the lawsuits the company faced “turned out positive,” Leon Cabrera, a trader at CI Casa de Bolsa, said by phone from Mexico City.
The refinancing plan for the company based in San Pedro Garza Garcia, Mexico, swaps the defaulted debt for $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 a 12 percent rate.
To contact the reporter on this story: Ben Bain in New York at email@example.com
To contact the editor responsible for this story: David Papadopoulos at firstname.lastname@example.org