EveryWare Global, Inc. announced that it is moving forward with its previously announced restructuring plan and has filed voluntary Chapter 11 petitions to implement a prepackaged financial restructuring that cancels approximately $248 million of the company’s long-term debt in exchange for common stock representing 96% of the company’s common stock post-emergence.
The terms of the restructuring support agreement include, among other things: up to $40 million in debtor-in-possession facility to provide liquidity during the restructuring, a reorganization plan that, after emergence from bankruptcy, provides for the secured lenders to become the owners of 96% of EveryWare Global’s common stock, payment in full in cash for all holders of allowed general unsecured claims, and a plan for EveryWare Global to cease to be a publicly traded company.
The company noted that trade vendors “will continue to be paid in the ordinary course.”
As previously reported, the company expects to emerge from bankruptcy within 60-75 days.
“We are moving forward with our previously announced, lender supported restructuring plan,” said Sam Solomon, president and CEO of EveryWare Global.
“The liquidity provided by our lenders during this process allows us to focus on running the business in the ordinary course while we deleverage our balance sheet,” Solomon added.