Oneida gets further waiver extension

New York, June 15 - Oneida Ltd. got another waiver extension regarding financial covenants, scheduled revolver availability reductions and overdue bond payments, with the waiver now set to expire on July 15 instead of June 15.

The company added that it is working on reaching an agreement in principle by July 15 that would automatically extend the waiver to Aug. 16 to allow time to document and complete the proposed recapitalization.

More specifically, under the latest waiver bank lenders have agreed to postpone reductions in credit availability under the company's revolver that were scheduled to take place, according to a company news release. Availability was supposed to be reduced by $5 million on Nov. 3, 2003, $10 million on Jan. 30, 2004 and $20 million on Feb. 7, 2004.

And, Oneida's senior note holders also agreed to further defer until July 15 a $3.9 million payment that was originally due on Oct. 31, 2003.

The company is continuing its work with lenders on modifications to its credit facilities and providing lenders with updated financial information regarding operations and restructuring plans. The company expects there will be a further deferral of the above credit availability reductions and principal payment until modifications have been agreed upon, the news release added.

Oneida is an Oneida, N.Y., tableware products company.

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