Syratech, noteholders extend deadline for filing Chapter 11

By Jeff Pines

Washington, Dec. 30 - Syratech Corp. and the holders of its 11% senior notes due 2007 have agreed to extend the deadline for the company to enter Chapter 11 to Jan. 31 from Dec. 31.

The extension was reported in a Wednesday filing with the Securities and Exchange Commission.

Holders of more than two thirds of the principal of the East Boston, Mass.-based company's notes have signed a lock-up agreement for a pre-negotiated Chapter 11 filing.

The agreement calls for the noteholders to get a share of 405,000 new common shares and $55 million of new five-year convertible notes. Shareholders would get warrants to buy 5% of the common stock in the reorganized company.

The new notes would have an 8% interest rate for the first two years, or at 10% if the interest is paid in kind, and then increase to 10% for the next three years. Each note would be convertible into 10 common shares.

Syratech makes flatware and other tabletop products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.