MONTERREY, Mexico, Nov 1 (Reuters) - Creditors of Mexican glassmaker Vitro on Tuesday rejected a revised restructuring plan by the company to improve terms for those fighting the firm in court over its $3.4 billion debt.
Vitro , which makes everything from beer bottles to perfume containers for luxury brands, struggled to repay its borrowings amid losses on derivatives and a drop in business triggered by the global recession.
On Monday, the company presented a new proposal which is largely identical to the 2010 filing with “improvements to certain economic conditions for Vitro’s creditors,” including higher interest rate payments.
However, Jaime Guerra, a lawyer representing the investment funds opposed to the restructuring plan, dismissed it.
“Vitro’s offer is an insult to the creditors,” he said.
Funds fighting the plan include Knighthead Master Fund LP, Brookville Horizons Fund LP and Lord, Abbett.
Vitro filed a pre-packaged bankruptcy plan in December.
In August, a court in the northern city of Monterrey, where Vitro is based, ruled the company can vote on its own inter-company debt, a sticking point in battles with creditors. The lenders said they would appeal the ruling.