Vitro skips Ps. 150 million payment on certificates to preserve cash

By Caroline Salls

Pittsburgh, Feb. 5 - Vitro, SAB de CV has elected not to make a scheduled Ps. 150 million payment, plus interest, due Feb. 5 on its certificados bursatiles issued in 2003 in order to preserve cash needed to continue its operations, according to a company news release.

Although the documents governing the certificates give the company a three-day grace period, Vitro said it does not intend to make the payment in that time frame. Instead, the company said it will hold discussions with the certificate holders regarding a restructuring of its financial obligations.

In addition, Vitro said Credit Suisse International has filed a lawsuit against one of the company's subsidiaries in the Supreme Court of the State of New York demanding payment of about $85 million in connection with a derivative financial instrument.

Vitro said it is analyzing alternatives related to the lawsuit.

Additionally, the company said an accounts receivable credit facility with the Royal Bank of Scotland has been concluded.

The facility provides funds to one of Vitro's subsidiaries and has a $19 million balance. The company said it expects the settlement process to be finished within the next three weeks.

As previously reported, the company decided last week not to make interest payments due Feb. 2 on its 8 5/8% senior notes due 2012 and 9 1/8% senior notes due 2017.

Vitro is a Nuevo Leon, Mexico-based glass manufacturer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.