A $35 million piece of Oneida bank debt was auctioned off by an original lender around the 90 context last week.J.P. Morgan is believed to have won the auction, but that information could not be confirmed. Oneida bank debt is considered illiquid, but this latest sale comes as the company obtained extensions through March 15 to waivers from its lenders.
The waivers were needed for violations to the financial covenants under Oneida's credit agreement and for $35 million in payments due on the credit facility starting in November, according to company filings. The company also obtained approval from senior noteholders to defer a $3.9 million payment that was due on Oct. 31.
Oneida is continuing to work with its lenders to modify its credit agreement. J.P. Morgan is the agent for the credit. Bank of America, Fleet National Bank, HSBC Bank, M&T Bank, the Bank of Nova Scotia, the European American Bank (now owned by Citibank), and Banca Nazionale Del Lavoro were among the list of original lenders, according to company filings.