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Oneida shareholders request appointment of official equity holders committee
By Caroline Salls
Pittsburgh, April 4 - Oneida Ltd.'s ad hoc committee of equity security holders has asked the U.S. Trustee for the company's Chapter 11 case to appoint an official committee of equity security holders for the case, according to a letter to U.S. Trustee Deirdre A. Martini.
According to the letter, analysis of the company's financial projections suggest "there is ample value in Oneida to fully satisfy the claims of all creditors and support a recovery of more than $70 million for the equity holders."
"The company's Chapter 11 filings are being carefully orchestrated to squeeze out minority shareholders and to ensure that they do not receive their rightful distribution of estate value," the equity holders said in the letter.
The shareholders also said the company refused to meet and confer with minority shareholders on the terms of its restructuring, but instead negotiated the plan with insiders and "conflicted parties in interest."
In addition, the ad hoc equity holders committee objected to the company's proposed debtor-in-possession facility and its request to hire Credit Suisse Securities (USA) LLC as financial adviser, according to Tuesday filings with the U.S. Bankruptcy Court for the Southern District of New York.
The committee said both motions are premature because no official committee has been appointed to serve as the company's "primary case counter-balance."
Oneida, an Oneida, N.Y.-based maker of flatware, dinnerware, crystal and metal serving pieces for consumers and the food services industry, filed for bankruptcy on March 19. Its Chapter 11 case number is 06-10489.
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