EveryWare Global Files Prepackaged Chapter 11 Plan -- Update

By Sara Randazzo 

EveryWare Global Inc., maker of Anchor Hocking and Oneida kitchen products, filed for Chapter 11 protection Tuesday with plans to implement a debt-for-equity swap with senior lenders.

In a filing made in U.S. Bankruptcy Court in Wilmington, Del., EveryWare said it has assets of $237.8 million and liabilities of $380.4 million.

The company said earlier this month that it had already reached a deal with its secured lenders, which are owed $248.7 million. Under the prepackaged deal filed Tuesday, the lenders will become the owners of 96% of EveryWare Global's common stock. The other 4% of its stock will go to existing equity holders in exchange for their support of the restructuring, the company said in court filings.

Unsecured creditors will be paid in cash under the plan, which the company said has the support of more than 65% of its term loan lenders and more than 84% of common stock holders.

EveryWare, which was formed by Monomoy Capital Partners, has been in talks with its lenders 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.

Its bankruptcy will be funded by a $40-million loan provided by lenders backing the restructuring, and the company will be able to continue accessing a $60 million asset-based revolving credit facility, it said in court filings.

EveryWare said it hopes to have its restructuring plan approved by the court in approximately 30 days.

Monomoy formed EveryWare in 2012 when it merged glassware maker 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 made efforts to restructure out of court last year in the face of declining revenue. The company temporarily shut down one of its manufacturing facilities and received a $12 million equity commitment to help meet its debt obligations. The money wasn't enough. EveryWare continued to negotiate with lenders and installed a number of new leaders, including Sam Solomon as chief executive.

The company ended 2014 with $354 million in revenue. In March, EveryWare auditors predicted that its revenue would fall 20% this year and that it may have to issue a so-called going concern warning, which would put the company in default within 30 days.

The 1,557-employee company manufactures and sells kitchen glassware, baking dishes and cutlery under brands including Anchor Hocking, Fire-King, Oneida, Buffalo, Delco and Sant' Andrea.

Its tableware is made at glass manufacturing plants in Lancaster, Ohio and Monaca, Penn. Its customers include Wal-Mart Stores Inc., Target Corp., Crate and Barrel, Darden Restaurants Inc. and Royal Caribbean Cruise Lines, court filings show.

The case, numbered 15-10743, has been assigned to U.S. Bankruptcy Judge Laurie Selber Silverstein.

Patrick Fitzgerald contributed to this article.

Write to Sara Randazzo at [e-mail]

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