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Vitro initiates settlement trial against dissident funds to recover up to US$1.6 billion
By: PR Newswire
Dec. 17, 2012 06:28 PM
SAN PEDRO GARZA GARCIA, Nuevo Leon, Mexico, Dec. 17, 2012 /PRNewswire/ -- Vitro S.A.B. de C.V. (BMV: VITROA), hereinafter "Vitro" or the "Company", announced today that it has started the process to recover damages caused by the lawsuits filed by the dissident funds to put Vitro and 17 subsidiaries into involuntary bankruptcy in Mexico, which were dismissed on appeal. Under the applicable legal framework in Nuevo Leon, the amount claimed could reach US$1.59 billion, which corresponds to 20% of the total amount claimed at the time by the so-called vulture funds from each of the companies in those proceedings.
It should be noted that under the approved restructuring plan, the new bonds issued and payments made by Vitro to bondholders who opposed the restructuring were placed in a trust which stipulates that Vitro may collect from this trust the amounts that these creditors are liable for due to these actions. The funds that are exposed to these damages are Moneda, Brookville Horizons Fund, Davidson Kempner Distressed Opportunities Fund and Knighthead Master Fund.
The Company has sought information from these funds to determine whether they have agreements to share the costs of actions certain funds took on behalf of the whole group. "If they do have such agreements, we will pursue such recoveries from all relevant parties, including Aurelius and Elliott," said Claudio del Valle, Chief Restructuring Officer of Vitro.
Furthermore, Vitro reports that the Court of Appeals of the United States Fifth Circuit in New Orleans lifted the Temporary Restraining Orders that prevented the collection actions against Vitro and its subsidiaries by the dissident funds.
In view of this decision the Company could be facing a unique situation, since it has two conflicting orders and therefore two markedly different obligations in both countries. The debt that could form the basis for the dissident funds' collection actions in the United States has been restructured and replaced with new debt in Mexico. Consequently the Company is evaluating the financial implications of this particular situation.
Vitro, S.A.B. de C.V. (BMV: VITROA), is the leading glass manufacturer in Mexico and one of the world's major glass companies, backed by more than 100 years of experience in the industry. Founded in 1909 in Monterrey, Mexico, the company currently has subsidiaries in the Americas, which offer quality products and reliable services to meet the needs of two different types of business: glass containers and flat glass. Companies of Vitro produce, process, distribute and market a wide range of glass articles which are part of the daily life of thousands of people. Vitro offers solutions for multiple markets including food, drinks, wines, liquors, cosmetics and pharmaceuticals, as well as the architectural and automotive. The company is also a supplier of raw materials, machinery and equipment for industrial use. As a socially responsible company, Vitro implements various initiatives to contribute to improving the quality of life of its employees, providing support to the communities where it has presence, preserving the environment and favoring an ethical and transparent management. For more information, please consult the website: http://www.vitro.com.
This announcement contains statements about future events regarding Vitro, S.A.B. de C.V. and its subsidiaries. While Vitro believes that forward-looking statements are based on reasonable assumptions, all such statements reflect Vitro's current views with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in this press release. Many factors could cause Vitro's actual results, performance or achievements to be materially different from anticipated future results, performance or achievements that may be expressed or implied by such forward-looking statements. In particular, completion of the offers described above or the Concurso Plan on the basis described, or at all, is uncertain. Vitro does not assume any obligation to, and will not, update these forward-looking statements.
For further information, please contact:
SOURCE Vitro S.A.B. de C.V.
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