Oneida signs letter of intent for proposed $222.5 million purchase by D.E. Shaw, Xerion

By Caroline Salls

Pittsburgh, July 14 - Oneida Ltd. signed a letter of intent to be acquired by an entity to be formed by shareholders D.E. Shaw Laminar Portfolios, LLC and Xerion Capital Partners LLC for at least $222.5 million, or an amount sufficient to pay the company's secured bank claims and the payment or assumption of all other general unsecured claims, according to an Oneida news release.

In addition, the buyers will include consideration for the company's common equity holders in connection with securing their approval of the proposed transaction.

Oneida said it expects that the proposed transaction would be completed through an offer to purchase 100% of the equity interests of Oneida through a plan funding agreement.

Execution of a definitive agreement is subject to confirming due diligence by the buyers, standard regulatory approvals and other conditions, including confirmation of Oneida's plan of reorganization. If Oneida and the buyers fail to reach a definitive agreement, Oneida said it would move forward to complete its original recapitalization plan, which is supported by its lenders.

"The proposed agreement with Laminar and Xerion represents a very favorable outcome for Oneida and its stakeholders, including creditors, shareholders, employees, vendors and our valued customers," Oneida chairman Christopher H. Smith said in the release.

"This transaction would set the table for Oneida's growth," Oneida president James E. Joseph added in the release.

"We are prepared, as I believe few in our industry are, to meet our challenges, strengthen our business and provide exceptional service to customers."

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 in the U.S. Bankruptcy Court for the Southern District of New York. Its case number is 06-10489.

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