Metromedia Steakhouses Company, L.P. and Certain Affiliates File Chapter 11 Cases to Reorganize Around Franchise Operations and Core Restaurant Locations
Ponderosa(R) and Bonanza(R) Steakhouses Will Continue Operating Without Interruption During Reorganization - Franchised Stores Are Not Included in the Filings - DIP Financing Will Support Reorganization and Operations
Metromedia Steakhouses Company, L.P. and certain of its affiliates, which operate a chain of restaurants under the Ponderosa(R) Steakhouse and Bonanza(R) Steakhouse brands, today announced that they filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The Company will reorganize around its franchise operations and a profitable core of company-operated restaurants.
In connection with the filing, the Company announced that it has received a commitment of secured debtor-in-possession (DIP) financing from an affiliate, Metromedia Company, the company's existing secured creditor. Upon receipt of bankruptcy-court approval, the Company will use the DIP financing and cash from operations to fund operating expenses.
The company stressed that it will continue operating and that it will be business as usual. Bob Hoffman, President of the Company, emphasized that the filing will have a positive long-term impact on the Company's domestic and international operations.
As part of the filing, the Company is seeking relief from the bankruptcy court to protect its major constituencies. The Company intends to fully and seamlessly serve its customers and satisfy its employee wage and benefit obligations as it did before the Chapter 11 filing. The Chapter 11 debtors are represented by Jeffrey Reisner, Esq. of Irell & Manella LLP.
Ponderosa Franchising Company, Ponderosa International Development, Inc. and Bonanza Restaurant Company, which are subsidiaries of the Company and are the franchisors of the Ponderosa Steakhouse and Bonanza Steakhouse brands, were not included in the Chapter 11 filing.
Metromedia Steakhouses Company, L.P. owns, operates and franchises family-focused restaurants operating under the Ponderosa Steakhouse and Bonanza Steakhouse brands directly and through its affiliates.
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