Published: November 18, 2010
Vitro America Reviewing Involuntary Chapter 11 Filing By Certain Bondholders of Parent Company
MEMPHIS, Tenn. - (BUSINESS WIRE) - 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.
For Vitro America:
Kekst and Company
Michael Freitag or Paige
Gruman, 212-521-4800
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