Reply #56: Oneida Files for Chapter 11 Protection - shareholders are losers

[UpInArms]

http://sfgate.com/cgi-bin/article.cgi?f=/news/archive/2006/03/20/financial/f064632S68.DTL&type=business

Oneida Ltd., which was once the world's largest maker of stainless steel flatware, has filed a pre-negotiated plan to reorganize under Chapter 11 bankruptcy protection that calls for the company to shed about $100 million in debt.

<snip>

The announcement comes a year after the flatware company closed its factories to concentrate on distributing and marketing imported flatware.

<snip>

Oneida said once its reorganization plan is confirmed, all of its existing common and preferred stock will be canceled and shareholders will get nothing. New common stock will be issued to holders of its debt. A second group of debtholders, owed $115 million, will have their debt refinanced by a $170 million exit loan.

<snip>

Founded in 1881, Oneida employed more than 5,500 people worldwide and had annual sales of $500 million at its peak in the 1990s.

...more at link...