A.B. de C.V. (“Vitro” or “The Company”) announced today that, the Federal Unitary Second Court for the Fourth Circuit in Monterrey, Nuevo Leon, as Appeals Court, has affirmed a lower Federal court’s dismissal of the eighteen involuntary bankruptcy lawsuits filed against Vitro and seventeen of its subsidiaries by dissident bondholders in December 2010.
Moreover, the Appeals Court ruled that, as a result of the dismissal of the involuntary bankruptcy lawsuits, Vitro and each of its corresponding seventeen subsidiaries are now entitled to recover their corresponding legal fees and expenses from the petitioning dissident bondholders.
In another legal victory for Vitro, the Third Collegiate Court for Civil Matters for the Fourth Circuit in Monterrey, Nuevo Leon, has dismissed a constitutional challenge filed by dissident bondholders against certain provisions of the Mexican Business Reorganization Act (Ley de Concursos Mercantiles) and the December 2010 ruling admitting Vitro’s petition to commence the reorganization phase of its voluntary prepackaged insolvency proceeding in Mexico. The Collegiate Court’s dismissal cannot be challenged further and may negatively impact the dissident bondholders’ chances for success in other pending appeals and constitutional challenges in Mexico relating to Vitro’s now-completed insolvency proceeding.
Mr. Claudio Del Valle, Vitro’s Chief Restructuring Officer stated, “We are pleased that in both of these rulings, the nature of the tactics employed by the so-called vulture funds will have consequences against them. In particular, the ruling by the Second Appeals Court orders the vulture funds to reimburse Vitro and its subsidiaries for their legal fees and expenses in defending against the involuntary bankruptcy lawsuits, in amounts to be determined in accordance with the relevant Mexican law.
“As previously reported, notwithstanding these and other efforts by the highly litigious vulture funds, Vitro has successfully implemented its recently approved concurso plan in Mexico, and is awaiting a decision on its request to enforce the concurso plan in the U.S. following a hearing next month before the U.S. bankruptcy court in Dallas, Texas. In the meantime, we will continue to focus on operational excellence and delivering value for our customers.”
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 America and Europe, 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: