EveryWare Global Inc. (NASDAQ:EVRY) the maker of Oneida Kitchen and Anchor Hocking products has filed for bankruptcy under Chapter 11. It plans to implement a debt for equity swap with senior leaders.
In its filing in Bankruptcy Court in Wilmington, Del., EveryWare stated that it had assets of $237.8 million and liabilities of $380.4 million. Earlier in the month, the company announced that it had reached a deal with some of its lenders to whom it owes $248.7 million.
Under the deal filed in the court, the lenders will become 96% owners of EveryWareGlobal’s common stock. The rest of the 4% will go to the current equity holders for their assent to the deal. According to preliminary results, the company incurred a loss of $102.5 million in the year ending 2014. This was more than the $17.4 million lost by the company in 2013.
Earlier, EveryWare Global Inc. (NASDAQ:EVRY) had told about its intent to file for a pre-packaged bankruptcy that would give the lenders control of the company after it emerges from bankruptcy. The company said that it would no longer trade publicly after emerging from bankruptcy.
The company announced that it has received notice from Nasdaq to delist the company for being bankrupt. The company will not appeal the delisting determination by Nasdaq. The company expects that its securities will be eligible as fast as possible to be quoted on the OTC Bulletin Board or Pink Sheets.
EveryWare has been consulting with its lenders for months on its monetary difficulties. The lenders primarily consist of funds managed by asset managers like Deutsche Bank AG. CIFC, Voya and OppenheimerFunds.
EveryWare was formed in 2012 by the merger of Anchor Hocking LLC and Oneida Ltd. Both Anchor and Oneida were bought by Monomoy bought of Chapter 11.
EveryWare is a 1,557 employee company and sells kitchen glassware and cutlery under various brands like Oneida, Delco and Anchor Hocking.