Vitro closes on settlement, effectively ends all litigation and finalizes its restructuring process

Vitro, S.A.B. de C.V. (BMV: VITROA), hereinafter “Vitro” or the “Company,” announced today that it has closed the transactions contemplated by the agreements that will enable the Company to definitively conclude its restructuring process.

The agreements effectively end all litigation between Vitro and certain creditors in Mexico and the United States, allowing Vitro to definitively conclude its restructuring process.      

The Company is confident that consummation of these transactions as contemplated by the agreement position Vitro to create more value for all its stakeholders, including employees, suppliers, creditors and shareholders, and in particular its customers, especially those in the U.S. Specifically, the agreements are a settlement agreement between Vitro and certain non-consenting creditors and other parties, and a separate agreement between Vitro and its financial partner, Fintech.

As provided for in the agreement with Fintech, Fintech will receive a note for US$235 million with a 2 year maturity as well as 12.7% of the outstanding share capital of Vitro’s subsidiary FIC Regiomontano S.A.P.I., (“FIC”) as consideration for the withdrawal of awarded claims and for ending the associated legal proceedings related to the requests for involuntary bankruptcies in the U.S.

Vitro further announced today that it has reached a preliminary agreement with Fintech, subject to approval by the shareholders of both entities and regulatory and governmental consents, to merge FIC into Vitro. If approved, the merger will result in the exchange of Fintech’s shares of FIC for 20% of Vitro’s voting stock. The Company expects to complete this merger within the next 6 months.

Claudio Del Valle, Vitro’s Chief Restructuring Officer, said “We are very pleased to have closed the transactions to effectively end all litigation and finalize our restructuring process ahead of schedule. We are also pleased to announce the merger between FIC and Vitro, which will benefit the Company by giving it the flexibility needed to continue its operations. This merger is completely transparent to shareholders, as it exchanges FIC shares for Vitro shares of equivalent value.”

600450 Vitro closes on settlement, effectively ends all litigation and finalizes its restructuring process glassonweb.com
Date: 11 April 2013
Source: www.vitro.com

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