By Patrick Fitzgerald
EveryWare Global Inc., maker of Anchor Hocking and Oneida
kitchen products, said it has reached a deal on the terms of a
debt-for-equity swap that calls for its senior lenders to take
control of the company.
The company, which was formed by Monomoy Capital Partners, said
Wednesday that it has already reached a deal with its secured
lenders, which are owed a total of some $248.6 million. The lenders
will become the owners of 96% of EveryWare Global's common stock
and the sale will be completed through a prepackaged Chapter 11
filing.
Sam Solomon, EveryWare's chief executive, said in a statement
the deal with lenders "addresses our balance sheet" and positions
the company to invest in the business and pursue future growth
opportunities.
EveryWare Global Inc. has been in talks with its lenders, owed a
total of about $260 million, for months over its financial
difficulties. The lenders, led by Deutsche Bank AG, mainly consist
of funds managed by asset managers such as CIFC, Voya and
OppenheimerFunds.
The company earlier hired turnaround adviser firm Alvarez &
Marsal to help it improve its bottom line. But the pending
bankruptcy filing was prompted by what EveryWare said was a
forthcoming going concern warning from its auditors. Such a warning
would have pushed the company into default.
EveryWare Global said that a group of consenting lenders, owed
$163.1 million and representing some 65.6% of its outstanding debt,
have signed off on its restructuring proposal. That is enough to
win approval of the proposed plan from a bankruptcy judge.
Lenders that are backing the restructuring proposal have agreed
to lend EveryWare $40 million to fund its business during the
bankruptcy case.
The bankruptcy isn't expected to interrupt EveryWare's
operations. The company must file for Chapter 11 by April 7 and a
plan must be confirmed within 50 days of the filing.
EveryWare Global expects to emerge from Chapter 11 in 60 to 75
days from the day it enters bankruptcy and will cease to be a
publicly traded company. The proposed plan calls for unsecured
creditors to be paid in full and existing shares to be
canceled.
Monomoy formed EveryWare in 2012 when it merged glassware maker
and Anchor Hocking LLC and flatware manufacturer Oneida Ltd.
The buyout firm bought Oneida in 2011, several years after the
134-year-old maker of flatware and dinnerware emerged from Chapter
11. Monomoy bought Anchor Hocking Corp. out of Chapter 11 in
2007.
EveryWare manufactures and sells kitchen glassware, baking
dishes and cutlery under the Anchor Hocking, Fire-King, Oneida,
Buffalo, Delco and Sant' Andrea brands.
Write to Patrick Fitzgerald at patrick.fitzgerald@wsj.com
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