Oneida expects to exit bankruptcy by Sept. 12 following confirmation

By Caroline Salls

Pittsburgh, Aug. 31 - Oneida Ltd. expects to emerge from Chapter 11 bankruptcy by Sept. 12 following confirmation of its prepackaged plan of reorganization Wednesday by the U.S. Bankruptcy Court for the Southern District of New York, according to a company news release.

"We are extremely pleased that the court has approved our recapitalization," president James E. Joseph said in the release.

"The successful recapitalization is the culmination of a revitalization process we began more than 18 months ago and marks a new beginning for Oneida.

"We are looking forward to building on our strong brand and outstanding customer relationships to continue Oneida's growth into its second century.''

As previously reported, Oneida's plan provides for the conversion of 100% of its tranche B loan into 100% of the equity of the newly reorganized company.

The plan also includes $170 million in senior secured long-term credit facilities, consisting of an $80 million asset-based revolving credit facility and a $90 million term loan that will refinance Oneida's tranche A debt and provide the company with additional liquidity to continue to grow its business.

Oneida, an Oneida, N.Y.-based maker of flatware, dinnerware, crystal and metal serving pieces, filed for bankruptcy on April 2. Its Chapter 11 case number is 06-10489.

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