Oneida Kitchenware Files for Preplanned Bankruptcy
EveryWare Global, Inc., the makers behind far-reaching kitchenware manufacturer Oneida, has filed for bankruptcy, choosing a pre-made plan which will give lenders control of the company.
The filing follows after 2014 shortcomings, such as the Sept. 30 reportings of a net loss of $49.4 million for that quarter, as well as a major decline in customer orders because of decreased inventory levels caused by factories left idle in order to save money.
Since reporting the losses, many of the company’s key members have left their offices, including the chief financial officer, the senior vice president of operations and supply chain, and the senior vice president of sales.
In the Chapter 11 bankruptcy filing, the company reported consolidated assets of about $237.8 million, and a consolidated debt of about $380.4 million.
Before filing, however, the company had already created a restructuring plan with its holders for about $163.1 million, which is about 66% of its $248.8 million term loan. The plan proposes to repay the unsecured creditors in full, while the secured creditors will be get about 96% of what they’re owed. Additionally, preferred shareholders will be given 2.5% of the company’s new stock.
With this premade plan, the company expects to exit bankruptcy within 60-75 days.
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