March 1, 2012
by Mariana Santibáñez
Mexico’s Vitro appears to have won a protracted and bitter war with holdout creditors after a local court ruled earlier this year in favor of the troubled glassmaker’s unpopular restructuring plans. The results not only have the buyside up in arms, but could carry broad implications for other Mexican high-yield names seeking to raise money abroad.
Fixed-income investors are now vowing to take a closer look at the country’s junk names and threatening to charge a “Vitro” premium going forward while also keeping a close eye on other companies that have recently struggled under the weight of heavy debt loads such as cement maker Cemex.
“What Vitro is doing really pu
Vitro appears to have won a shootout with creditors over its restructuring plans, but longer-term questions remain over Mexico’s Concurso Mercantil system.