Feb. 21 (Bloomberg) -- Vitro SAB, the Mexican glassmaker that defaulted on $1.5 billion of bonds in 2009, rose to the strongest level since June 2008 as the company moves ahead with its restructuring plan.
Vitro rose 7.5 percent to 17.2 pesos at 11:52 a.m. in Mexico City, headed to its fifth day of gains. It has soared 19 percent since Feb. 14. The stock advanced to as high as 17.6 pesos in intraday trading, the strongest since touching 17.63 pesos on June 30, 2008.
The company said on Feb. 7 that a Mexican judge gave approval for it to restructure defaulted debt over the objections of U.S. creditors who said it was unfair for $1.9 billion of intercompany loans that Vitro created after the default to be included in a vote on the refinancing plan. Noteholders, including Elliott Management Corp., had argued that the inclusion of intercompany debt let Vitro dictate terms.
The stock is rising after some of the lawsuits the company faced “turned out positive,” Leon Cabrera, a trader at CI Casa de Bolsa, said by phone from Mexico City.
The refinancing plan for the company based in San Pedro Garza Garcia, Mexico, swaps the defaulted debt for $814.6 million of new bonds maturing in 2019 with an interest rate of 8 percent and $95.8 million of debt convertible to shares with a 12 percent rate.
--With assistance from Jonathan J. Levin and Jonathan Roeder in Mexico City and Thomas Black in Dallas. Editors: Glenn Kalinoski, Brendan Walsh
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