Waterford Wedgwood, units forced into receivership, administration by forbearance expiration

By Caroline Salls

Pittsburgh, Jan. 5 - Waterford Wedgwood plc and some of its Irish subsidiaries have been placed in receivership, and administrators have been appointed for Waterford Wedgwood UK plc and some U.K. subsidiaries, according to a company news release.

"The board has acted tirelessly in its efforts to resolve the company's issues as a going concern," non-executive chairman Anthony O'Reilly said in the release. "And the principal shareholders have invested in support of this business for almost 20 years.

"We are consoled only by the fact that everything that could have been done, by management and by the board, to preserve the group, was done."

Waterford Wedgwood said it asked the Irish Stock Exchange to suspend trading of its stock units immediately after David Carson of Deloitte LLP was appointed as the receiver for the company and the Irish subsidiaries.

Angus Martin, Neville Kahn, Nick Dargan and Dominic Wong, also of Deloitte, have been appointed as joint administrators to Waterford Wedgwood UK and the other U.K. subsidiaries placed in administration.

According to the release, the group's board of directors has been focused on recapitalization and a possible investment in the company as a going concern.

Although the board was making progress on this effort, Waterford Wedgwood said the Irish companies were forced into receivership and the U.K. companies into administration following the expiration and non-renewal of a loan default forbearance agreement, which was essential to the group continuing as a going concern.

"I am disappointed that certain of the group's U.K. and Irish subsidiaries have had to go into administration and receivership, but we remain optimistic that ongoing discussions will result in a buyer being found for the businesses," group chief executive officer David Sculley said in the release.

As previously reported, Waterford elected not to make the Dec. 1 semiannual interest payment on its €166.03 million of 9 7/8% mezzanine notes.

The senior lenders agreed to the forbearance in connection with a cross-default under the facility agreement.

Waterford is an Ireland-based luxury table and dinnerware manufacturer.

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