Bonds News

Credit Suisse to sue Mexico's Vitro over default

MONTERREY, Mexico, Feb 5 (Reuters) - Glassmaker Vitro VITROA.MXVTO.N said on Thursday Credit Suisse CSGN.VX was taking it to court to recover $85 million after the Mexican company defaulted on derivative contracts.

Monterrey-based Vitro, once a major glassmaker but now struggling with high debt and falling sales, said the Swiss bank had started legal proceedings in New York.

“The company is analyzing alternatives,” Vitro said in a statement.

Vitro is negotiating a debt restructuring after it failed last week to pay $293 million in derivative contracts, as well as interest payments on bonds maturing in 2012, 2013 and 2017.

Vitro also said it did not pay 150 million pesos ($10.5 million) plus interest on local debt that it had issued in 2003 and which matured on Thursday.

The company’s decision not to service its debt leaves it open to $1.2 billion in claims by bondholders.

Shares in Vitro rose 0.71 percent to 4.28 pesos on Thursday and 3.66 percent in New York to $0.85. (Reporting by Gabriela Lopez, editing by Leslie Gevirtz)