Vitro Arbitrator Says Restructuring May Extend Past Dec. 31
Vitro SAB, the Mexican glassmaker that defaulted on $1.5 billion of bonds, probably won’t conclude its debt restructuring by year-end as the company anticipates, the court-appointed arbitrator in the proceedings said, Bloomberg reported. External creditors, who oppose Vitro’s restructuring proposal, will raise more legal challenges with the judge in the case, arbitrator Javier Navarro-Velasco said by telephone from Monterrey, Mexico. He will present the proposal to the judge by Dec. 5 and said he expects 70 percent of creditors, including intercompany debt controlled by subsidiaries, to approve. “I couldn’t say with certainty that this is going to be resolved by Dec. 31,” he said. “It could be a little more.” Vitro said yesterday it expects to complete a deal “before year’s end.” The proposal by the San Pedro Garza Garcia, Mexico-based company includes $814.6 million of new bonds maturing in 2019 and $95.8 million of mandatory convertible debt. Vitro said Nov. 22 that shareholders approved the plan. “We are currently working to implement our plan as soon as the judge’s ruling is issued to all creditors who timely consent to the restructuring plan,” Chief Restructuring Officer Claudio del Valle said in the statement yesterday. Consenting creditors would likely get securities and cash with a recovery on current face value of 47.6 percent to 60 percent, depending on how many holders agree. Read more.