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SOURCE Vitro S.A.B. de C.V.
SAN PEDRO GARZA GARCIA, Nuevo Leon, Mexico, March 4, 2013 /PRNewswire/ -- Vitro S.A.B. de C.V. (BMV: VITROA), hereinafter "Vitro" or the "Company," announced that it has entered into agreements that will enable the Company to definitively conclude its restructuring process. The agreements will end all litigation between Vitro and certain creditors in Mexico and the United States ("U.S.") over the past two years, allowing Vitro to conclude its restructuring.
The Company is confident that these agreements 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.
"These agreements allow us to close the book on a challenging period for our Company, and focus entirely on our business and meeting our customers' needs," said Adrian Sada Gonzalez, Vitro's Chairman of the Board of Directors. He also commented, "Thanks to the valuable participation of our directors and the strong support of Fintech and its Director, David Martinez, we have reached a satisfactory conclusion in this matter and are ready to take advantage of the extraordinary opportunities that exist today for Vitro."
David Martinez said, "The financial restructuring of Vitro's indebtedness has achieved its objective of creating low and sustainable leverage after a decade of high debt levels. We are excited to participate as a financial partner in this new stage and are fully confident that under the leadership of Adrian Sada and its focused management, the Company will capitalize on its outstanding growth prospects, including those in the North American market."
The Company looks forward to executing its strategic plan for growth internationally, primarily in the U.S., which in 2012 accounted for sales of approximately US$446 million a year – US$329 million for packaging and US$117 million in flat glass –, as well as focusing on strengthening customer relationships and seeking new business opportunities abroad.
"Once we implement these agreements, the Board's mandate is clear: focusing on developing business lines, maintaining the healthy financial profile we have achieved and generating long-term value for our shareholders," said Hugo A. Lara Garcia, Vitro's CEO.
The key terms of the settlement agreement are as follows:
- Fintech will purchase from the members of the Ad Hoc Group all of their holdings of bonds and pay to the Indenture Trustees and the Ad Hoc Group members an amount to cover fees, costs, and expenses incurred by the Indenture Trustees and the Ad Hoc Group members.
- Certain of the settling parties have agreed to grant one another mutual releases, which cover, among other things, all claims related to the court proceedings and certain costs and fees.
- The parties will consensually dismiss all suits, actions, appeals, and amparos between and among them in Mexico and in the United States.
The key terms of the agreement which was reached with Fintech are as follows:
- Fintech will acquire the substantial majority of the bonds from the non-consenting creditors, will relinquish the legal actions against Vitro and its subsidiaries in the U.S. and Mexico associated with these bonds and will consent to the Concurso Plan that was approved by the Federal Courts of Mexico, in respect of these bonds and claims. These actions will increase the approval rate of such plan to almost 99% of the recognized creditors;
- Vitro will cease collection actions in Mexico for costs and damages against the non-consenting creditors and drop the lawsuits it filed in the U.S., thus ending all legal proceedings against them; and
- As consideration for the withdrawal of these awarded claims and for ending the associated legal proceedings related to the requests for involuntary bankruptcies in the U.S., Fintech will receive shares of a wholly owned subsidiary of Vitro, representing up to 13% of its equity (a participation that will be determined based upon its audited financial statements as of December 31, 2012), and a note for US$235 million with a two year maturity, which will be issued by such subsidiary.
Claudio Del Valle, Vitro's Chief Restructuring Officer, said "Fintech's participation was crucial in order to establish the foundation for the agreements we have reached. It provided a means by which the non-consenting creditors could exit their positions, and allowed Vitro to gain a new partner in Fintech which we are sure will add value to the Company, as Fintech shares our vision for the business."
"We appreciate the support the Federal Government of the United Mexican States has provided to Vitro in its restructuring," said Alejandro Sanchez Mujica, Vitro's Executive Legal President and General Counsel.
The execution of the agreement with Fintech referenced in this release is subject to relevant government approvals, and the authorization of the different courts involved. The settlement agreement referenced in this release is subject to the authorization of the courts in Mexico and the United States, as well as certain other closing conditions.
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 the Americas, 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: http://www.vitro.com.
This announcement contains statements about future events regarding Vitro, S.A.B. de C.V. and its subsidiaries. While Vitro believes that forward-looking statements are based on reasonable assumptions, all such statements reflect Vitro's current views with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in this press release. Many factors could cause Vitro's actual results, performance or achievements to be materially different from anticipated future results, performance or achievements that may be expressed or implied by such forward-looking statements. In particular, completion of the transactions described above or the Concurso Plan on the basis described, or at all, is uncertain. Vitro does not assume any obligation to, and will not, update these forward-looking statements.
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