As expected, Oneida kitchenware maker EveryWare Global Inc. filed for bankruptcy after reaching an agreement with its secured creditors.
As Mergers & Acquisitions reported in this week’s Turnaround Tuesday column, EveryWare had previously announced its intention to file for bankruptcy. The move was prompted by a warning from the company’s auditor that it would cast doubt about EveryWare’s ability to continue as a going concern in the annual audit a circumstance that would violate EveryWare’s loan agreement and cause it to default.
The Lancaster, Ohio-based company listed debt of more than $500 million, which included a dozen subsidiaries, according to papers filed in bankruptcy court in Wilmington, Delaware.
The Chapter 11 filing follows EveryWare’s April 1 announcement of the agreement with creditors, which would substantially reduce long-term debt and give secured lenders 96 percent-ownership of the company’s stock after it emerges from bankruptcy.
EveryWare’s largest holders include Monomoy Capital Partners with 59 percent of the stock and Clinton Group Inc. with 24 percent, according to the filing.
The case is In re EveryWare Global Inc., 15-10743, U.S. Bankruptcy Court District of Delaware (Wilmington).
--Additional reporting by Allison Collins.