EveryWare Global emerges from bankruptcy; plan takes effect June 2

By Kali Hays

New York, June 2 – EveryWare Global, Inc.’s Chapter 11 plan of reorganization is in effect as of June 2, according to a notice filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The company said that it has emerged with a “significantly reduced debt load and a strengthened balance sheet,” according to a news release.

EveryWare’s exit financing includes a $70 million asset-based revolving credit facility and a $40 million term loan provided by a group of the company’s post-petition lenders.

As previously reported, the restructuring plan was confirmed at the end of May and canceled roughly $248 million of long-term debt in exchange for common stock representing 96% of the company’s post-emergence common stock.

Based on a restructuring support agreement, the plan provides for the company’s secured lenders to become the owners of 96% of EveryWare Global’s common stock, for cash payment in full of allowed general unsecured claims and for payment of trade vendors in the ordinary course of business.

Under the plan the company will no longer be publicly traded.

The company’s ABL facility will be reinstated with the completion of the restructuring.

According to an April 21 court filing, EveryWare’s term loan creditors, holding $209.28 million in claims, voted unanimously to accept the plan.

In exchange for the cancellation of all shares of the company’s currently outstanding preferred stock, holders will receive shares equal to 2.5% of the total outstanding new common stock.

In exchange for the cancellation of all shares of the company’s current outstanding common stock and outstanding vested options or unexercised warrants to acquire shares of common stock that are in the money, existing common stockholders will receive shares equal to 1.5% of the new common stock.

Following emergence from bankruptcy, the holders of EveryWare’s common stock are expected to be its secured lenders and some stockholders affiliated with the company.

All outstanding options and unexercised warrants to acquire shares of current common stock that are out of the money and unvested options to acquire shares will be canceled, and holders will receive nothing.

Upon filing the plan, EveryWare said the plan creates a sustainable capital structure that will ensure that it is well positioned to invest in the business and pursue future growth opportunities.

EveryWare Global is a Lancaster, Ohio-based supplier of food preparation products that filed bankruptcy on April 7. The Chapter 11 case number is 15-10743.

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