EveryWare Global to file for prepackaged bankruptcy
(Adds details, shares)
April 1 (Reuters) - EveryWare Global Inc, a marketer of cookware and tabletop products, said it expects to file for prepackaged bankruptcy that will give its lenders control of the company after it emerges from bankruptcy.
The company's shares slumped as much as 82 percent to 21 cents in early trading on Wednesday.
EveryWare said it expects to file for a prepackaged Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware and expects to emerge from bankruptcy within 60-75 days.
The company did not say when it would file for bankruptcy.
After emerging from bankruptcy, EveryWare's secured lenders will own 96 percent of its common stock and the company will no longer be publicly traded, EveryWare said.
EveryWare, which has reported a loss for six straight quarters, said its term lenders had agreed to provide up to $40 million in debtor-in-possession financing.
The company, which had long-term debt of $245.4 million as of Sept. 30, has a market capitalization of $26.6 million before the stock's fall on Wednesday.
Investment firm Monomoy Capital Partners is the company's largest shareholder with a 67.06 percent stake as of October, according to Thomson Reuters data.
EveryWare also estimated revenue fell 16.6 percent to $96.1 million in the fourth quarter ended Dec. 31.
EveryWare was formed through the merger of Anchor Hocking LLC and Oneida Ltd in March 2012 and markets and distributes products such as bakeware, storageware, cookware and other kitchen products in the United States, Canada, Mexico and Asia.
The stock traded as high as $13.74 in August 2013.
(Reporting by Shailaja Sharma in Bengaluru; Editing by Savio D'Souza)
