UPDATE 1-Mexico glass maker Vitro cancels New York shares

(Adds background about company)

MEXICO CITY, June 22 (Reuters) - Mexican glass maker Vitro, which has defaulted on its debt, said on Monday it is canceling its New York-traded American Depositary Receipts to cut costs.

Monterrey-based Vitro (VITROA.MX) said the ADRs (VTO.N) would no longer be available as of Aug. 24, partly because of low trading volume.

The company said in January it failed to pay $293 million in obligations related to losing derivatives positions.

Vitro is negotiating with banks including Credit Suisse, Calyon, Merrill Lynch, Barclays and Citigroup to restructure its debt. (Reporting by Noel Randewich; Editing by Phil Berlowitz)