NEW YORK (TheStreet) -- EveryWare Global (EVRY) soared Monday after the company reached an agreement with lenders to waive its breached debt covenants, which would allow it to maintain solvency for the remainder of the month.
The Lancaster, Ohio-based manufacturer of Oneida cutlery and Anchor Hocking glassware fell out of compliance with its investor covenants at the end of its first quarter. EveryWare said in a statement Saturday that lenders agreed not to exercise their rights under a forbearance agreement that lasts until June 30. The rights included a requirement for the company to repay a $250 million term loan.
Bloomberg reports comments from Chief Financial Officer Bernard Peters, who said on May 23 that having to retire the term loan could have brought EveryWare into insolvency.
The company did not produce sufficient cash flow to satisfy leverage and maintenance covenants on the loan after a decline in consumer spending resulted in losses in six of the past seven quarters.
Standard & Poor's said in a May 16 note that lenders could be left with as little as 10 cents on the dollar should EveryWare become insolvent.
The stock was up 59.09% to $1.75 at 3:09 p.m.