Buffets Holdings, Inc. Emerges from Chapter 11
Buffets Holdings, Inc. today announced that it has emerged from Chapter 11 reorganization. After meeting all closing conditions to the Company's exit financing and to its Plan of Reorganization, which was confirmed by the U.S. Bankruptcy Court for the District of Delaware in an order entered on April 17, 2009, the Plan has now become effective.
In conjunction with its emergence from Chapter 11, Buffets today closed on $117.5 million in new first lien exit financing from various lenders. This financing, in addition to $139.8 million in second lien rollover financing remaining from the pre-petition lenders, enables the Company to satisfy its Chapter 11 Plan obligations and provide working capital for ongoing operations.
'This is a great day for Buffets, and an achievement for which all of our Team Members should be very proud,' said Mike Andrews, Chief Executive Officer of Buffets Holdings. 'Due to their hard work and dedication over the last fifteen months, we are emerging with a stronger balance sheet, significantly less debt, and greater resources to improve operations and make investments in our business.'
Andrews continued: 'In addition to our Team Members, as well as our loyal guests, we thank our business partners for their support throughout this challenging process. We look forward to continuing to work with them to deliver the highest quality food, service, and value to our guests.'
Effective today, Buffets has a new Board of Directors, and, in accordance with the Plan, the Company's newly issued equity is privately held by certain former creditors and does not trade on any established exchange.
Buffets Holdings, Inc. and all of its subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code on January 22, 2008. In addition to strengthening its balance sheet and reducing its debt, Buffets has also used the Chapter 11 process to right-size its organization, including streamlining its portfolio of restaurants and reducing operating expenses across the business.
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