Oneida plan of reorganization confirmed

By Caroline Salls

Pittsburgh, Aug. 30 - Oneida Ltd.'s prepackaged Chapter 11 plan of reorganization was confirmed, according to an opinion filed Wednesday by the U.S. Bankruptcy Court for the Southern District of New York.

Under the prepackaged plan, all of the company's stock will be issued to the holders of its tranche B debt.

The company's $115 million tranche A term loan will be refinanced with a long-term revolving credit and term loan facility from Credit Suisse.

All of Oneida's existing common and preferred stock will be canceled, and holders will receive no recovery.

Treatment of creditors under the plan will include:

• Holders of secured tranche A claims will recover 100% in cash;

• Holders of secured tranche B claims will receive 100% of the stock in the reorganized company;

• Holders of Pension Benefit Guaranty Corp. secured claims will recover 100% through a $3 million variable-interest promissory note;

• Holders of other secured claims will have their claims reinstated for 100% recovery;

• Holders of general unsecured claims will recover 100% in cash;

• Holders of specified unsecured claims, subordinated claims and equity interests will receive no recovery under the plan.

According to Wednesday's filing, all objections to the plan confirmation were overruled.

As previously reported, in a July 7 objection to an Oneida exclusivity extension request, the company's official committee of equity holders said it would be in a position to quickly formulate and file a confirmable Chapter 11 plan of reorganization.

On June 30, the equity committee filed an objection to Oneida's pre-negotiated reorganization plan and said it was not confirmable because it misappropriated value to Oneida's secured lenders that rightfully belonged to Oneida shareholders.

In the confirmation opinion, bankruptcy judge Allan L. Gropper said the equity committee did not support their claims at the confirmation hearing.

Oneida, the Oneida, N.Y, company that makes flatware, dinnerware, crystal and metal serving pieces for consumers and the food services industry, filed for Chapter 11 on March 19. Its Chapter 11 case number is 06-10489.

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