The prepackaged bankruptcy plan is expected to allow the Company to operate its business in the ordinary course throughout the restructuring. The Company also believes this plan will minimize the time and expense spent in restructuring and will provide for sufficient liquidity during the restructuring.
Importantly, the restructuring plan will create a sustainable capital structure that will ensure that the Company is well positioned to invest in the business and pursue future growth opportunities.
“We are pleased to have the support of our lenders to move forward with a restructuring plan that addresses our balance sheet to secure a bright future for our company,” said Sam Solomon, President and CEO of EveryWare Global. “We have made considerable progress improving our day-to-day operations and this restructuring plan strengthens the Company’s balance sheet for long-term success. We are confident that this plan is in the best interest of our customers, vendors, employees and our business partners.”
To implement the restructuring, the Company expects to file voluntary petitions for a prepackaged chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware.
On March 31, 2015, EveryWare Global and its lenders executed a restructuring support agreement specifying the details of a restructuring support agreement that sets forth the material terms of the Chapter 11 restructuring and of a debtor-in-possession facility to provide liquidity during the restructuring. Given the typical speed of a “prepackaged” plan of reorganization, the Company expects to emerge from bankruptcy within 60-75 days.
The plan for reorganization contemplates that after emergence from bankruptcy, the secured lenders will become the owners of 96% ofEveryWare Global’s common stock and that EveryWare Global will cease to be a publicly traded company.
