VITRO VS. ELLIOTT

PAUL SINGER’S ELLIOTT MANAGEMENT AND OTHER U.S. HEDGE FUNDS REJECTED A MEXICAN REORGANIZATION PLAN FOR GLASS MAKER VITRO. THEY WANT BONDS, A CASH PAYMENT AND 61 PERCENT OF THE COMPANY’S EQUITY.

THE STATS

VITRO $1.8 BILLION IN REVENUE

• GLASS MAKER FOUNDED IN 1909

• DEFAULTED ON $1.5 BILLION OF DEBT, INCLUDING $1.2 BILLION OF BONDS

• REORGANIZATION PLAN APPROVED BY A MEXICAN JUDGE IN 2012 GIVES CREDITORS THE EQUIVALENT OF 45 TO 55 CENTS ON THE DOLLAR

ELLIOT $20 BILLION IN ASSETS UNDER MANAGEMENT

• HEDGE FUND FOUNDED IN 1977

• AVERAGE ANNUAL RETURN OF 14 PERCENT, WITH ONLY TWO LOSING YEARS, IN 1998 AND 2008

• ONE OF A GROUP OF CREDITORS HOLDING MORE THAN $700 MILLION FACE VALUE OF DEFAULTED VITRO BONDS

THE DATES

9 ROUNDS

FEBRUARY 2009

Vitro defaults on $1.2 billion of bonds amid the severe recession and soured bets on derivatives contracts.

DECEMBER 2009

Vitro gets $75 million from Fintech Advisory. Vitro shuffles assets to owe $1.9 billion to its units.

JUNE TO NOVEMBER 2010

Elliott Associates, Aurelius Capital and others buy more than $700 million face value of Vitro debt.

NOVEMBER 2010

Hedge funds file in Texas to place Vitro subsidiaries into involuntary bankruptcy. Vitro resists.

DECEMBER 2010

Vitro files for voluntary bankruptcy. Creditors file to win Vitro assets in the U.S.

APRIL 2011

A Mexican appeals court declares Vitro in bankruptcy based on its voluntary restructuring.

OCTOBER 2011

Mexican conciliator proposes a reorganization plan that U.S. creditors reject.

FEBRUARY 2012

Mexican judge Sandra Lopez approves Vitro’s bankruptcy reorganization.

JUNE 2012

Judge Harlin Hale declines to enforce Mexican reorganization plan. Vitro appeals.

Sources: Court documents, SEC records and company reports

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