Fifth Circuit Rejects Seventh Attempt by Dissident Bondholders to Impede Vitro's Restructuring

SAN PEDRO GARZA GARCIA, Mexico, Jan. 25, 2012 /PRNewswire/ -- Vitro S.A.B. de C.V. ("Vitro" or "The Company") (BMV: VITROA) reports that yesterday, the United States Court of Appeals for the Fifth Circuit issued a seventh denial to a group of dissident bondholders' opposed motion for a stay pending appeal, leaving in full effect an order (the "Automatic Stay Order") of the United States Bankruptcy Court for the Northern District of Texas and halting their continued effort to attack Vitro's restructuring proceedings in Mexico through collateral litigation in New York State court.  The Bankruptcy Court – which previously recognized Vitro's Mexican restructuring proceedings as a "foreign main proceeding" under Chapter 15 of the U.S. Bankruptcy Code – ordered that the dissident bondholders' New York litigation violated the bankruptcy stay protecting Vitro and its restructuring efforts in Mexico and should be enjoined. 

Vitro's restructuring is fully consistent with other Mexican restructurings which have been recognized by U.S. courts every time such recognition has been requested.

"The Fifth Circuit's denial is significant because the dissident bondholders, who are highly sophisticated investors, have demonstrated a pattern of highly litigious behavior that destroys companies and jobs for self-enrichment.  These vulture funds have made numerous efforts to attack Vitro's Mexican restructuring proceedings through collateral litigation in U.S. courts, and have now filed seven separate motions seeking to stay the effect of the Automatic Stay Order pending their appeal from the order, which have all been rejected (including three rejections by the Fifth Circuit Court of Appeals). Each and every time, the U.S. courts have determined this process would be handled through Mexican bankruptcy law," said Alejandro Sanchez Mujica, Vitro's Executive Vice President and Legal Counsel.

"This seventh denial further illustrates that the rights of Vitro's creditors will be determined by the Mexican court presiding over its concurso proceeding without interference from U.S. Courts.  In fact, the United States District Court for the Northern District of Texas recently said the vulture fund investors' actions to sidestep Mexican law would 'lead to judicial chaos' and stated that they exhibit  'a parochial bias' that was rejected by the enactment of Chapter 15 of the U.S. Bankruptcy Code."

The Vitro restructuring follows a well-established system that has been put in place by the U.S. and Mexico, as well as other governments, to provide clear rules for the administration of multinational restructurings such as Vitro's.

Vitro, S.A.B. de C.V. (BMV: VITROA), is the leading company in the manufacture of glass in Mexico and one of the largest in the world, backed up by more than 100 years of experience in the industry. Founded in 1909 in Monterrey, Mexico, the company currently has subsidiaries in America and Europe, which offers quality products and reliable services to meet the needs of two different types of business: glass and flat glass containers. Companies of Vitro produced, processed, distributed and marketed 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, preserve 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 offers 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.

For further information, please contact:

SOURCE Vitro S.A.B. de C.V.