EveryWare Global, Inc. announced that it is moving forward with the restructuring plan announced on April 1, 2015 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.
As previously disclosed, the terms of the restructuring support agreement include, among other things:
- Up to $40 million in debtor-in-possession (DIP) 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
- Trade vendors will continue to be paid in the ordinary course
- A plan for EveryWare Global to cease to be a publicly traded company
Given the typical speed of a "prepackaged" plan of reorganization, the company expects to emerge from bankruptcy within 60-75 days. Importantly, the restructuring plan will create a sustainable capital structure that will ensure that the company is well positioned to invest in the business and pursue future growth opportunities.
"We are moving forward with our previously announced, lender supported restructuring plan," said Sam Solomon, President and Chief Executive Officer 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."
EveryWare is a leading global marketer of tabletop and food preparation products for the consumer and foodservice markets, with operations in the United States, Canada, Mexico and Asia.