Vitro Officials Say Settlement Has Been Reached
April 9, 2013
by Penny Stacey, email@example.com
Vitro S.A.B. de C.V. officials say they have closed the previously
announced settlement agreements that they expect to enable the
company to definitively conclude its restructuring process.
According to Vitro, the agreements should "effectively end
all litigation between Vitro and certain creditors in Mexico and
the United States."
"The company is confident that consummation of these transactions
as contemplated by the agreement 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.," writes the company in a statement. "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."
As part of the agreement, Fintech Investments will receive a note
for $235 million (U.S. dollars) with a two-year maturity as well
as 12.7 percent of the outstanding share capital of Vitro's subsidiary,
FIC Regiomontano S.A.P.I., "as consideration for the withdrawal
of awarded claims and for ending the associated legal proceedings
related to the requests for involuntary bankruptcies in the U.S."
Vitro officials say they also have reached a preliminary agreement
with Fintech, subject to approval by the shareholders of both entities
and regulatory and governmental consents, to merge FIC into Vitro.
If approved, the merger will result in the exchange of Fintech's
shares of FIC for 20 percent of Vitro's voting stock. The company
expects to complete this merger within the next six months, according
to its statement.
In conjunction with the announcement by Vitro, court records show
that on March 28 a "petition for writ of certiorari was filed
by [Vitro]" related to Finetech Investments" in the U.S.
Supreme Court. On April 3, the Supreme Court issued an order extending
the Vitro noteholders' time to file a response to the petition.
"We are very pleased to have closed the transactions to effectively
end all litigation and finalize our restructuring process ahead
of schedule," says Claudio Del Valle, Vitro's chief restructuring
officer. "We are also pleased to announce the merger between
FIC and Vitro, which will benefit the company by giving it the flexibility
needed to continue its operations. This merger is completely transparent
to shareholders, as it exchanges FIC shares for Vitro shares of
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