EveryWare Global on Wednesday announced a prepackaged bankruptcy plan that would give its senior lenders control of the company in exchange for “substantially” reducing the company’s long-term debt.
The Lancaster, Ohio, maker of glassware and flatware said that plans to file for a prepackaged Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware. Doing so would provide liquidity through a debtor-in-possession facility and enable the company to continue operating through the restructuring.
According to S&P Capital IQ, as of September 30, 2014, EveryWare Global had $237.8 million of assets and total long-term debt of $273.4 million.
In the third quarter ended September 30, the business had a 19% drop in revenue and an EBITDA loss of $26.9 million. Everyware Global executives attributed the sales decline to “lower order fulfillment rates, missed seasonal promotional sales opportunities, and customer uncertainties surrounding the business stemming from our lenders’ negotiations and liquidity concerns.”
Once EveryWare emerges from its expedited bankruptcy within 60 to 75 days, the lenders would become the owners of 96% of the company’s common stock and EveryWare would cease to be a publicly-traded company.
“We are pleased to have the support of our lenders to move forward with a restructuring plan that addresses our balance sheet to secure a bright future for our company,” EveryWare president and chief executive Sam Solomon said in a press release. “We have made considerable progress improving our day-to-day operations and this restructuring plan strengthens the company’s balance sheet for long-term success.”
A Dow Jones story said that EveryWare had been negotiating for months with its lenders, led by Deutsche Bank and Wells Fargo Bank, and before that had enlisted the services of turnaround advisory firm Alvarez & Marsal.
EveryWare manufactures and sells kitchen glassware, baking dishes, and cutlery under the Anchor Hocking, Fire-King, Oneida, Buffalo, Delco, and Sant’ Andrea brands.