Fintech in Vitro Restructuring

March 4, 2013

Cleary Gottlieb advised Fintech Investments Ltd., the largest creditor of Vitro, S.A.B. de C.V. in connection with agreements that will enable Vitro to definitively conclude its restructuring process. Vitro’s restructuring, which began in 2010, has been one of the largest multi-jurisdictional restructurings of a Mexican company.

In order to facilitate the resolution of Vitro’s restructuring process, Fintech entered into a Settlement Agreement that provides for the dismissal or resolution of all litigation by and among Vitro, Fintech and certain creditors in Mexico and the United States and for Fintech to purchase the bonds held by those creditors. Fintech also entered into a separate agreement with Vitro pursuant to which Fintech agreed to use the bonds acquired under the Settlement Agreement to increase the approval rate of Vitro's concurso mercantil plan to almost 99% of the recognized creditors of Vitro. In return for Fintech’s assistance, one of Vitro’s subsidiaries will provide Fintech with up to 13% of its shares and a senior secured note with a two-year maturity. The implementation of these agreements remains subject to certain governmental approvals and court authorizations and the satisfaction of closing conditions.

Cleary Gottlieb has been counsel to Fintech in a number of related matters, including as counsel to Fintech in Vitro-related litigation and bankruptcy proceedings in the United States. Vitro is the leading Mexican producer of flat and packaging glass with global distribution networks.