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Vitro America Reviewing Involuntary Chapter 11 Filing By Certain Bondholders of Parent Company.

MEMPHIS, Tenn. -- Vitro America LLC ("Vitro America"), a leading fabricator, distributor and installer of glass in the construction and automotive replacement markets in the United States, today announced that it intends to continue to conduct business as usual notwithstanding the action taken by certain members of an ad hoc group of noteholders of its parent company, Vitro, S.A.B. de C.V. ("Vitro SAB"). Late yesterday, these noteholders, who own approximately $75 million, or approximately 6 percent, in principal amount of senior notes issued by Vitro SAB, commenced involuntary cases under Chapter 11 of the U.S. Bankruptcy Code against 15 of Vitro SAB's U.S. subsidiaries (the "U.S. subsidiaries") including Vitro America. Vitro America and the other US subsidiaries are reviewing this filing and considering an appropriate response.

Vitro America noted that its relationship with its U.S.-based lender remains strong and that the U.S. subsidiaries currently have sufficient cash availability to fulfill ordinary course obligations to employees, customers and trade vendors as they come due. Consistent with applicable law, the U.S. subsidiaries intend to continue to operate their businesses in the ordinary course, with full authority to fulfill their contractual and financial obligations on normal business terms. The U.S. subsidiaries intend to continue paying employees' wages, salaries and benefits in the ordinary course.

On November 1, 2010, Vitro America's parent company, Vitro SAB, commenced a tender offer, exchange offer and consent solicitation in connection with its anticipated prepackaged Concurso plan in Mexico. "Vitro SAB expects that these offers and solicitation will be concluded successfully and that the issues raised by the ad hoc noteholder group will be resolved," stated Claudio Del Valle, the Chief Restructuring Officer of Vitro SAB.

"We are working with our parent company and our legal and financial advisors to try to resolve this issue as soon as possible," said Arturo Carrillo, President and Chief Executive Officer of Vitro America. "In the meantime, we and Vitro SAB's other U.S. subsidiaries are taking appropriate measures to help ensure that we will continue to operate as usual with no changes to our day-to-day operations."

About Vitro America LLC

Headquartered in Memphis, Tennessee, Vitro America is a leading fabricator, distributor, and installer of glass in the construction and automotive replacement markets. Vitro America serves more than 40,000 customers from more than 100 locations throughout the United States. Vitro America is a wholly owned subsidiary of Vitro SAB, one of the largest glass manufacturers in the world.
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Comment:Vitro America Reviewing Involuntary Chapter 11 Filing By Certain Bondholders of Parent Company.
Publication:Business Wire
Geographic Code:1U6TN
Date:Nov 19, 2010
Words:473
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