Oneida's equity security holders committee files objection to exclusivity extension

By Jennifer Lanning Drey

Eugene, Ore., July 7 - Oneida, Ltd.'s official committee of equity security holders filed an objection to the company's request to extend its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The company wants to extend its exclusive plan filing period to Oct. 15 from July 17 and the solicitation period to Dec. 14 from Oct. 15.

The equity shareholders said in the objection that if the court denies Oneida's prepackaged reorganization plan, the equity committee would be in a position to formulate and file a confirmable Chapter 11 plan of reorganization in a quick fashion.

"It is wholly appropriate - and in fact necessary - for other parties-in-interest, and the equity committee in particular, to now have the opportunity to file a Chapter 11 plan. Accordingly, there is no cause to extend the exclusive periods, and the exclusivity extension motion should be denied," the equity shareholders said in the objection.

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

A hearing to consider confirmation of the exclusivity extension motion and the pre-negotiated reorganization plan is scheduled for July 12.

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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