Sbarro Files Plan To Exit Ch. 11

""Nation’s Restaurant News reports, “Sbarro Inc. proposed Tuesday to exit Chapter 11 bankruptcy by filing a joint plan of reorganization that would cut its debt by 73 percent, or $295 million, to a $110 million senior secured exit term loan facility.”

“The operator or franchisor of more than 1,000 quick-service Italian restaurants said the proposal is subject to an overbid process, which allows Sbarro’s creditors to maximize their recovery of the company’s $405 million in debt. The plan, which also includes a related disclosure statement, was filed with the U.S. Bankruptcy Court for the Southern District of New York.”

“Sbarro’s first-lien lenders approved the plan, upon completion of which they would own substantially all of the company’s equity. The lenders also have committed to provide Sbarro with a new $18.6-million term loan facility to provide sufficient working capital for the chain once it emerges from bankruptcy.”

Read more: http://nrn.com/article/sbarro-files-plan-exit-ch-11#ixzz1UeVJaWSw