Vitro Announces the Issuance of Credit Linked Notes Under Approved Restructuring Agreement

SAN PEDRO GARZA GARCIA, Nuevo Leon, Mexico, March 21, 2012 /PRNewswire/ -- Vitro, S.A.B. de C.V. ("Vitro" or "The Company") (BMV: VITROA) informed its investors that, in compliance with its obligations under the restructuring agreement approved on February 3, 2012, between Vitro and creditors identified in that agreement, and in accordance with applicable Ley de Concursos Mercantiles Articles, (the "Restructuring Agreement"), the credit linked securities ("CLNs") linked to Vitro securities and issued by certain unaffiliated trusts, have been issued.  The Restructuring Agreement, which was approved by the Judge for the Fourth District Court in Civil and Labor Matters in Monterrey Nuevo Leon contemplated the issuance of the CLNs.

In accordance with the provisions of the Restructuring Agreement, Vitro, acting as Settlor and Banco INVEX, S.A., Institucion de Banca Multiple, INVEX Grupo Financiero, as trustee, executed irrevocable trusts for the issuance, administration and payment of the CLNs, to which Vitro contributed the securities described below, as well as cash amounts required for payment of the restructuring fee contemplated by the restructuring agreement. The trusts in turn issued the CLNs to creditors. Pursuant to the Restructuring Agreement, creditors will receive the restructuring consideration set forth in such agreement through the above-mentioned trusts, subject to the terms and conditions set forth in the Restructuring Agreement.

The CLNs are securities issued by the trusts, linked to the following Vitro securities:

(a) New senior notes with a fixed interest rate of 8.0% and maturing in the year 2018, and
(b) New mandatory convertible debentures (or MCDs) with a fixed interest rate of 12.0% and maturing in 2015, which will be mandatorily convertible into 20.0% of Vitro's equity if not paid in full at maturity.

Additionally, Vitro paid a restructuring fee in accordance with the provisions of the Restructuring Agreement.

In accordance with the Restructuring Agreement, the CLNs and the payment of the restructuring fee involve the novation, payment, substitution and termination of the previous obligations, instruments, securities, agreements and guaranties under which the recognized credits in Vitro's Concurso Mercantil were documented. The CLNs and the payment of the restructuring fee also extinguish personal guarantees that third parties or direct and indirect subsidiaries of Vitro had granted with respect to the obligations, instruments, securities and agreements that led to these recognized credits, including securities previously issued by Vitro.

The issuance and delivery of the CLNs does not constitute a public or private offering of securities in Mexico and is executed in order to comply with the terms of the Restructuring Agreement and the Concurso Approval.

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 America and Europe, 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 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.

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