By Sara Randazzo
Kitchen product maker EveryWare Global Inc. won final court
approval Tuesday to tap a $40 million bankruptcy loan as it works
to implement a restructuring plan that will cut $250 in debt from
its balance sheet.
The signoff, from Judge Laurie Selber Silverstein in U.S.
Bankruptcy Court in Wilmington, Del., comes after no objections
were filed to the terms of the bankruptcy financing.
EveryWare has been on the fast track in its bankruptcy case
since filing for chapter 11 on April 7 with a pre-negotiated deal
with creditors already in hand.
In addition to the $40 million bankruptcy loan from existing
senior lenders, EveryWare has access to a $60 million revolving
credit line from Wells Fargo & Co.
EveryWare, which makes Anchor Hocking and Oneida bakeware,
stemware and other products, plans to turn over 96% of equity in a
restructured company to term-loan lenders owed $248.7 million. The
remaining 4% of equity will go to current shareholders in exchange
for their support of the restructuring.
Unsecured creditors, the company's more than 1,500 employees and
customers that include Crate & Barrel and Wal-Mart Stores Inc.
shouldn't be affected by the bankruptcy, company representatives
have said.
Before filing its restructuring plan, EveryWare had been in
talks with its lenders for months over its financial difficulties.
The lenders, led by Deutsche Bank AG, mainly consist of funds
managed by asset managers such as CIFC Corp. , Voya and
OppenheimerFunds.
Monomoy Capital Partners formed EveryWare in 2012 when it merged
glassware maker Anchor Hocking LLC and flatware manufacturer Oneida
Ltd., both of which had previously gone through bankruptcy. The
company manufactures and sells kitchen glassware, baking dishes and
cutlery under the Anchor Hocking, Fire-King, Oneida, Buffalo, Delco
and Sant'Andrea brands.
Earlier this month, the Lancaster, Ohio-based company said its
sales fell 17% in the December quarter to $96.1 million. Revenue
fell across the board, but hit its consumer and specialty segments
the hardest.
EveryWare made efforts to restructure out of court last year in
the face of declining revenue. The company temporarily shut down
one of its manufacturing facilities and received a $12 million
equity commitment to help meet its debt obligations. The money
wasn't enough. EveryWare continued to negotiate with lenders and
installed a number of new leaders, including Sam Solomon as chief
executive.
EveryWare has said it hopes to win court approval of its
restructuring plan at a May 20 hearing. Any objections are due May
13.
(Dow Jones Daily Bankruptcy Review covers news about distressed
companies and those under bankruptcy protection. Go to
http://dbr.dowjones.com)
Write to Sara Randazzo at sara.randazzo@wsj.com
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