Vitro to skip payment to save cash, prompting default

 Vitro SAB, Mexico’s largest glassmaker, said it will miss $44.8 million in interest payments due next week on $1 billion of bonds to preserve cash to run its operations.

Four counterparties to Vitro’s derivative investments provided notice of default, the company said in a statement to the Securities and Exchange Commission today, prompting Vitro to announce it will skip the two payments due Feb. 2.

“Vitro intends to maintain its operations and continue its business relationships with its customers and suppliers as it seeks to achieve a restructuring of its indebtedness,” the filing said, according to a Jan. 29 Bloomberg report.