InterNet Bankruptcy Library - News for February 5, 1997

Bankruptcy News For February 5, 1997

  1. Anchor Glass' Sale of Assets is Consummated

  2. Andover Togs Announces Plan of Reorganization

Anchor Glass' Sale of Assets is Consummated

GARZA GARCIA, N.L., MEXICO--February 5, 1997-- Vitro, Sociedad Anonima (BMV: Vitro; NYSE: VTO) announced that the sale of  
assets of its U.S. subsidiary Anchor Glass Container Corp. to Consumers Packaging, Inc. and Owens-Brockway Glass Container, Inc. was  
completed today. The proceeds of the sale, US$328.8 million in cash, US$47.0 million in face value of 10 percent cumulative convertible  
preferred stock and 490,898 common stock of the successor to Anchor will be used to repay Anchor's creditors.

In order to facilitate the sale and to assure the continuation of Anchor's pension plans (a condition to the closing of the transaction), Vitro  
provided to the Pension Benefit Guaranty Corporation a limited guarantee of Anchor's underfunding liability. No payments will be made  
under the guarantee unless the successor to Anchor fails to comply with its pension obligations and the PBGC terminates any of Anchor's  
three pension plans, and even then the guarantee would be payable only to the extent the PBGC could not recover from the successor to  
Anchor the underfunding liabilities. The amount of the guarantee is limited to US$70 million. Payments will not begin for five years and  
would then be payable in equal semiannual installments over the following ten years. Payments will not bear interest. The amount and the  
term of the guarantee will be proportionately reduced if the pension plans are terminated after five years from closing. Additionally, as  
previously noted, Vitro also entered into an agreement with Consumers Packaging, Inc., providing customary representations, warranties and  
indemnities, including a limited five year non-competition agreement.

As previously announced, after a series of liquidity difficulties, principally caused by the deterioration of the U.S. glass container sector, in  
September 1996, Anchor filed for protection under Chapter 11 of the U.S. Bankruptcy Code. An auction for the sale of Anchor's assets was  
conducted by the U.S. Bankruptcy Court in Wilmington, Delaware. On December 18, 1996 Anchor signed a definitive agreement to sell its  
assets to Consumers Packaging Inc. and Owens- Brockway Glass Container, Inc. for US$392.5 million subject to certain adjustments, plus  
the assumption of certain of Anchor's liabilities. On December 20, 1996 such agreement was approved by the Bankruptcy Court.

Vitro, S.A. produces glass containers, flat glass, automotive glass, glassware, plastic containers, aluminum cans and household appliances  
for commercial, industrial and consumer use. Vitro supplies numerous industries, including food and beverage, construction and automotive.  
Based in Monterrey, Mexico, and founded in 1909, Vitro has strategic alliances with a dozen large corporations around the world. Vitro  
operates in seven countries, including Mexico and the United States, and exports products to more than 60 countries worldwide.

CONTACT: Ulrich Sander (media) Vitro, Sociedad Anonima 011-528-329-1332 or Hugo Jaime Garcia (financial community) Vitro,  
Sociedad Anonima 011-528-329-1210 or Robert D. Ferris (U.S. contact) Ruder Finn, Inc. 212-715-1573

Andover Togs Announces Plan of Reorganization

NEW YORK, NY - Feb. 5, 1997 - Andover Togs, Inc. and its subsidiaries announced today that they have filed a Joint Plan of  
Reorganization and a proposed Disclosure Statement relating to the Plan. The Plan is supported by Andover's Official Committee of  
Unsecured Creditors which has recommended that holders of general unsecured claims vote to accept the Plan.

Under the Plan, the Company will pay 100% of the principal amount of allowed general unsecured claims over a five year period, with  
interest. The Plan is subject to the approval of the Bankruptcy Court and a vote by the Company's creditors. In addition, a condition of the  
Plan is that the Company must resolve unsecured claims so that they do not exceed $5.5 million in the aggregate.

A hearing has been scheduled by the Bankruptcy Court for February 27, 1997 to consider the adequacy of the Disclosure Statement. Andover  
anticipates that a hearing to confirm the Plan will be held in April 1997.

Andover Togs, Inc. designs, manufactures and distributes children's wear. It filed a petition under Chapter 11 of the Federal Bankruptcy  
Code in March 1996.

SOURCE Andover Togs, Inc./CONTACT: William L. Cohen, Chairman, President and Chief Executive Officer of Andover Togs,