Oneida disclosure statement approved; plan confirmation hearing set for July 12

By Caroline Salls

Pittsburgh, May 19 - Oneida Ltd.'s disclosure statement for its pre-packaged Chapter 11 plan of reorganization was approved Friday by the U.S. Bankruptcy Court for the Southern District of New York.

The plan confirmation hearing is scheduled for July 12.

Under the pre-packaged 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 for an unknown recovery amount;

• Holders of Pension Benefit Guaranty Corp. secured claims will recover 100% in their portion of a new PBGC note, which, if they vote to accept the plan, means a $3 million variable interest promissory note, or, if they vote to reject the plan, means a $3 million non-interest-bearing 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.

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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