Vitro Bonds Signal Sell to JPMorgan: Mexico Credit

Vitro SAB’s defaulted bonds are rallying to a two-month high, a sign to JPMorgan Chase & Co. and BCP Securities LLC to sell the securities because the price overvalues the Mexican glassmaker’s latest debt-restructuring offer by almost 50 percent.

The company’s dollar bonds due in 2017 are trading at 74 cents on the dollar, the highest level since Sept. 2, according to data compiled by Bloomberg. Jim Harper, director of corporate research at Greenwich, Connecticut-based BCP, said the restructuring proposal Vitro unveiled on Oct. 31 is worth “much closer to 50” cents on the dollar.

A Mexican judge ruled Aug. 12 that $1.9 billion of intercompany debt can be included in the restructuring, making Vitro its own biggest creditor and improving the chances the deal will win approval. Investors will demand higher yields on Mexican corporate debt on concern Vitro’s move will set a precedent followed by other issuers, said Robert Rauch, who manages $2.2 billion of emerging-market assets at Gramercy Advisors LLC.

Read the full story below.

600450 Vitro Bonds Signal Sell to JPMorgan: Mexico Credit

See more news about:

Others also read

Roto and VBH: A solution based on partnership
Roto strengthens current position / Acquisition of VBH Mexico / Professional infrastructure / Purchase increases performance and customer satisfaction / In mutual interest / All employees also acquired.
Deron Patterson
Industry veteran to lead national architectural managers, bolster company presence in Mexico.
Guillermo Martinez
Company veteran to oversee architectural glass operations in Mexico.
Greenbuild Mexico 2018
More than 500 green building experts expected to attend international sustainability conference.
Glassman Events announces next two international events
Glassman Asia in Bangkok, Thailand and Glassman Latin America in Guadalajara, Mexico.
Exceptional quality and safety standards are hallmarks of the production at SCHOTT Gemtron´s flat glass plant in San Luis Potosi. Photo: SCHOTT
A quarter of a century ago, the German technology group SCHOTT followed a customer to San Luis Potosí, and a Latin American success story began

From industry

Add new comment