Kitchenware business EveryWare Global Inc. (Nadaq: EVRY) is planning to file for bankruptcy protection.

The company, which defaulted on its loans last year, has entered into a restructuring support agreement (RSA) with lenders that support the bankruptcy plan.

The Lancaster, Ohio-based business sells a line of tabletop and food preparation products under the Anchor Hocking, Anchor, Anchor Home, FireKing, Oneida, Buffalo China, Delco and Sant' Andrea brands.

The bankruptcy decision 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.

EveryWare's auditor told the business that this year's opinion would contain a paragraph about the company's ability to continue as a going concern, which would cause the business to default on its term loan. On March 31, when EveryWare announced the RSA, the company said that it had agreements from lenders that hold 65.6 percent of its debt ($163.1 million) for a pre-packaged bankruptcy plan.

If approved, EveryWare plans to use $40 million in debtor-in-possession financing from some of its term lenders to get through the case.

The company's bankruptcy plan would provide unsecured creditors full repayment. Preferred stock holders would receive 2.5 percent of the company's stock after the restructuring on a pro-rata basis. Holders of common stock (can we say 'Common stock holders') would receive 1.5 percent of the company's shares on a pro rata basis.

In the April 1 SEC filing that announces the agreement, EveryWare says it would need to file for bankruptcy on or before April 7 under the RSA. 

Last August, an EveryWare subsidiary Oneida International Ltd. sold its U.K. unit to Hilco Capital Ltd. for about $6.15 million. That price included debt repayment, and was part of the company's effort to refocus on North American operations.

New York private equity firm Monomoy Capital Partners LP invested $20 million in the business, also in August, through a securities purchase agreement. That deal helped EveryWare get a waiver after it defaulted on its term loan. The company hadn't complied with the loan's consolidated leverage ratio and interest-cover ratio covenants for the first half of 2014.  

A representative for EveryWare did not immediately return a call for comment.

For the previous edition of Turnaround Tuesday, see Out of Bankruptcy, Dex Media Shows New Signs of Struggle.

For more information on struggling companies, check out our Distressed Company Watch List

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