Syratech emerges from Chapter 11, names co-CEOs

By Caroline Salls

Pittsburgh, June 7 - Syratech Corp. emerged from Chapter 11 bankruptcy on Sunday with a new $45 million senior credit facility from CapitalSource Finance LLC, according to a company news release.

The company also named Gregory W. Hunt and Alan Kanter as co-chief executive officers after Robert Meers, who had been CEO, left the company at the end of his three-year contract.

Hunt had been serving as executive vice president and chief financial officer at Syratech and Kanter as executive vice president of sales and product marketing.

Under the company's plan of reorganization, which was confirmed on May 12 by the U.S. Bankruptcy Court for the District of Massachusetts, holders of Syratech's $118.3 million 11% senior notes due April 15, 2007, along with holders of $10 million in claims from the rejection of contracts and unexpired leases, will get 405,000 new common shares upon reorganization, which will be the vast majority of the shares to be issued.

The noteholders and claims holders will also get $55 million of new five-year notes convertible into common stock.

Also under the plan, preferred and common stockholders will get a pro rata share of warrants to buy a 5% stake in the reorganized company.

The preferred stockholders will get a pro rata share to buy a 2.5% stake if Syratech's equity exceeds $140 million, and the common stockholders will get a 2.5% stake if the equity exceeds $155 million.

All other creditors will have their claims paid in full.

About 10% of the common stock of the reorganized Syratech will be reserved for a management incentive plan.

In the newly created role of co-CEO, Hunt and Kanter will be responsible for creating differentiation in the market through new product innovations and a continued focus on meeting consumer needs.

Hunt, who joined Syratech in 2001, has more than 20 years of financial and operations management experience with private and public consumer product, manufacturing and real estate companies.

He also has extensive experience in corporate restructuring as well as strategic business plan development, acquisition profiling and the management of corporate organizations and manufacturing operations.

Hunt will retain his seat on the company's board, representing management.

With more than 25 years of experience in the tabletop industry, Kanter has worked at Syratech since its inception in 1986 in a variety of positions, including responsibility for sales forecasting and overall management of Syratech's global sales force.

In a joint statement, Hunt and Kanter said in the release, "Having successfully restructured our finances, Syratech is now well positioned for future growth.

"We have made great strides with the very successful addition of the Vera Wang Silver and Gift brand along with new product offerings within our core product groups. This has created the foundation for additional licenses and innovative platforms for growth."

Syratech, an East Boston, Mass.-based maker of flatware and other tabletop products, filed for bankruptcy on Feb. 15. Its Chapter 11 case number was 05-11062.

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