EveryWare Global To File Petitions For Prepackaged Chapter 11 Bankruptcy

(RTTNews) - EveryWare Global Inc. (EVRY) announced Wednesday that it expects to file voluntary petitions for a prepackaged chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware.

The company said it has reached an agreement with its secured lenders on a comprehensive balance-sheet restructuring that, among other things, will substantially reduce the Company's long-term debt.

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.

According to the company, 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.

On Tuesday, 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% of EveryWare Global's common stock and that EveryWare Global will cease to be a publicly traded company.