Syratech to delay prepackaged bankruptcy filing past Dec. 31

By Ted A. Knutson

Washington, Dec. 17 - Syratech Corp. said it will delay making its prepackaged bankruptcy filing, originally targeted before the end of the year, because of bad fourth quarter performance.

The East Boston, Mass.-based tabletop and giftware manufacturer said it is petitioning lenders to postpone or waive a requirement that the firm have EBITDA at least as large as cash interest for four consecutive quarters which end on or after Dec. 31.

Syratech's new moves also include asking members of a noteholders committee to modify provisions in a 15-page lock-up agreement signed Nov. 15. On that day, investors controlling more than two thirds of the $118 million in principal of 11% senior notes due April 15, 2007 promised not to oppose Syratech's planned reorganization in exchange for the company's pledge to go ahead with the restructuring as detailed in the agreement.

The announcement came in an 8-K filing with the Securities and Exchange Commission.

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