Bankruptcy Roundup: Nevada/Chapter 9, Retail, Coal

Nevada legislators are considering legislation, Senate Bill 475, designed to give municipalities authority to file a bankruptcy petition under certain conditions. As written, the proposal requires that the state's tax commission must declare the entity in a severe financial emergency that is unlikely to cease within three years. The county or city, before filing the petition, must submit the proposed petition to the governor and the Office of the Attorney General for their review and approval.

EveryWare Global Inc. has filed Chapter 11 petitions to implement a prepackaged financial restructuring that cancels about $248 million of the company’s long-term debt in exchange for common stock representing 96% of its common stock post-emergence. "The liquidity provided by our lenders during this process allows us to focus on running the business in the ordinary course while we deleverage our balance sheet," the company said, adding it expects to emerge from bankruptcy within 60 to 75 days. EveryWare was formed through the merger of Anchor Hocking, LLC and Oneida Ltd. in March 2012 and is a global marketer of tabletop and food preparation products.

Xinergy Ltd., a U.S. producer of metallurgical and thermal coal, and 25 of its subsidiaries have filed for Chapter 11 protection. The company plans to operate its businesses and continue customer shipments during the reorganization. "Over the past several years, the coal markets in the U.S. have faced a number of significant challenges, including increased environmental regulations and reductions in demand due to weaknesses in the economy and lower natural gas prices," stated Bernie Mason, Xinergy's CEO, in a press release. "Additionally, continued weakness in the market for metallurgical and thermal coal, combined with an extremely cold winter that impacted the mining and shipment of coal, has continued to erode Xinergy's cash position."

- Diana Mota, NACM associate editor

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