Vitro Says Profit Rises to $88 Million on Revenue Gains
Vitro SAB (VITROA), the Mexican glassmaker that defaulted three years ago, posted a 14 percent gain in earnings before interest, taxes, depreciation and amortization in the first quarter as sales increased in the company’s automotive, construction and bottle markets.
Ebitda was 1.14 billion pesos ($88 million), compared with 998 million pesos a year earlier, the San Pedro Garza Garcia, Mexico-based company said in a statement. Sales rose to 5.76 billion pesos from 5.06 billion pesos.
Vitro defaulted on $1.5 billion of debt, including $1.2 billion of bonds, in February 2009, amid a recession that reduced demand for construction and auto glass. In February this year, the company received Mexican bankruptcy court approval for a debt restructuring plan. Some bondholders continue to oppose the plan in Mexican and U.S. courts.
The bondholders have argued it was unfair for $1.9 billion of intercompany loans that Vitro created after the default to be included in a vote on the reorganization. A hearing on an appeal by bondholders is scheduled for tomorrow in the U.S. Court of Appeals in New Orleans.
In addition, at a June trial in U.S. Bankruptcy Court in Dallas, Judge Harlin Hale will consider whether to enforce Vitro’s Mexican reorganization in the U.S.
Vitro’s net income amounted to 7.43 billion pesos in the first quarter, compared with 136 million pesos a year earlier.
“This reflects the effect of the implementation of our debt restructuring plan on February 23, 2012,” the company said in the statement.
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