NEW YORK, July 22, 2010 (GLOBE NEWSWIRE) -- The Steering Group for the Ad Hoc Committee of Vitro Noteholders (the "Steering Group") is comprised of holders, or investment advisors to holders, of more than $500 million of Vitro's Senior Notes due 2012, 2013 and 2017 (collectively, the "Senior Notes") issued by Vitro, S.A.B. de C.V. ("Vitro"). Vitro has been in default under the Senior Notes for more than 15 months, having failed to make scheduled bi-annual interest payments On February 1, 2009, May 1, 2009, August 1, 2009, November 1, 2009, February 1, 2010, and May 1, 2010. Moreover, the Senior Notes were accelerated by holders of the Senior Notes and/or the indenture trustees for such notes earlier this year -- which makes the full amount of the Senior Notes (approximately $1.2 billion principal amount) plus accrued and unpaid interest immediately due and payable by Vitro and its more than 50 Mexican and U.S. subsidiary guarantors of the Senior Notes.
Since the initial default by Vitro in February 2009, certain members of the Steering Group have urged Vitro to engage in a thoughtful, deliberate restructuring process that will maximize recoveries for holders of the Senior Notes. The Steering Group has rejected the latest restructuring proposal made by Vitro, which forms the basis of Vitro's announced "consent solicitation" to holders of the Senior Notes (the "Vitro Proposal"). Notably, the Vitro Proposal continues to undervalue the financial condition of Vitro's business and its ability to satisfy claims of holders of the Senior Notes. The Vitro Proposal (and the unsupported "consent solicitation" announced today by Vitro) is intended to redistribute value away from Vitro's creditors to its shareholders (including controlling family member shareholders).
As a result of the foregoing, the Steering Group reserves all its rights and is reviewing the exercise of appropriate remedies and options to protect holders of the Senior Notes. The Steering Group is represented by White & Case LLP and Chanin Capital Partners LLC as counsel and financial advisors, respectively.
Holders of the Senior Notes who are interested in obtaining more information are encouraged to contact the advisors for the Steering Group, as follows: