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Oneida reaches agreement with lenders, gets new $30 million revolver
By Jeff Pines
Washington, June 25 - Oneida Ltd. said it reached an agreement in principle with its lenders on a restructuring plan that will give its bankers a 62% equity stake in the company. The agreement also calls for a new $30 million revolver.
Under the plan, $30 million of the company's bank debt will be converted into common stock. The remainder of its bank debt will be converted into a three-year $125 million tranche A loan and a 3 ½ year $80 million tranche B loan.
Once the deal closes, the board of directors will be reorganized.
As previously announced, reaching agreement in principle with the lenders on the restructuring automatically extends through August 16, 2004 the waiver of compliance with financial covenants and the waiver of certain payments that have become due, in order to provide Oneida and its lenders time to prepare definitive documentation for the restructuring.
JPMorgan Chase Bank is administrative agent for the loan.
Oneida, based in Oneida, N.Y., makes flatware, dinnerware, crystal and metal serving pieces for consumers and the foodservices industry.
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