Sbarro Restaurants Said To Be Negotiating Higher Bid Than Bankruptcy Plan

""According to Bloomberg.com, “Sbarro Inc., a chain of fast-food Italian restaurants, is negotiating an offer that’s more valuable than the plan it entered bankruptcy with in April, a person familiar with the matter said.”

“The offer that’s being negotiated is from a “strategic” buyer, not a private equity or other financial firm, the person said. Sbarro ended its plan-support agreement and equity commitment accord with MidOcean Partners and Ares Corporate Opportunities Fund II LP to explore “other strategic alternatives,” according to a statement today. Sbarro, based in Melville, New York, is talking to an entity that may offer to buy the entire chain in a deal worth more than the original proposal to give itself to creditors in exchange for cutting its debt, said the person, who declined to be identified because details about the talks are private. That deal included a $30 million rights offering.”