Bankruptcy Court Approves EveryWare Restructuring Plan
Posted on May 26, 2015 by
LANCASTER, Ohio-The U.S. Bankruptcy Court for the District of Delaware has confirmed EveryWare Global’s financial restructuring plan, clearing the way from the company’s exit from Chapter 11.
EveryWare filed a prepackaged Chapter 11 on April 7. The restructuring plan provides for the cancellation of the company’s existing common stock, and will give cash equal to 6 cents per existing share to the company’s existing stockholders and holders of in-the-money warrants. Meanwhile, EveryWare’s prepetition term loan lenders will receive about 96.3 percent of the reorganized company’s common stock in exchange for their term loans.
At the same time, holders of existing preferred stock will receive shares of new common stock equal to about 2.5 percent of the reorganized company’s common stock. Also, the prepetition term loan lenders and their affiliates, along with certain stockholders affiliated with the company who hold existing common stock and existing in-the-money warrants, will receive about 1.2 percent of the reorganized company’s new common stock.
EveryWare said in a statement that it expects to finalize all proceedings and emerge from Chapter 11 “promptly”—although no specific date was given.
Sam Solomon, EveryWare’s president and CEO, said, “As we prepare to exit bankruptcy, we are in a much stronger financial position and now have the opportunity to grow by investing in our brands, innovation and customer relationships.”