Sbarro, Inc. Completes Reorganization and Successfully Emerges from Chapter 11
Court Approved Plan Becomes Effective November 30, 2011
MELVILLE, N.Y.--(BUSINESS WIRE)-- Sbarro, Inc., along with its domestic subsidiaries (the “Company”), announced today that its Plan of Reorganization has become effective and the Company has successfully emerged from Chapter 11 with significantly reduced debt and a new $35 million capital infusion.
“As Sbarro emerges from Chapter 11 today we are a stronger, better capitalized, and more competitive company with a solid financial foundation for future growth,” said Nicholas McGrane, Interim President and Chief Executive Officer of Sbarro. “Our reorganization plan eliminates more than 70 percent of our debt, and provides access to $35 million in fresh capital from our new ownership group.”
Mr. McGrane added, “With the support of our investors, vendors and landlords, and the hard work of our valued employees and franchisees, we are pleased that Sbarro has successfully navigated this process in a relatively short time period while operating our business as usual and without interruption. Our business is performing well, and as we enter our busiest period of the year, we look forward to building on our positive momentum and continuing to deliver great food and service to our customers.”
About Sbarro, Inc.
Based in Melville, New York, we are the world's leading Italian quick service restaurant concept and the largest shopping mall-focused restaurant concept in the world. We have more than 1,000 restaurants in more than 40 countries. Sbarro restaurants feature a menu of popular Italian food, including pizza, a selection of pasta dishes and other hot and cold Italian entrees, salads, sandwiches, drinks and desserts. Additional information is available at http://www.sbarro.com/.
This press release contains "forward-looking statements," within the meaning of the federal securities laws that involve risks and uncertainties. All statements herein that address activities, events, conditions or developments that the Company expects or anticipates will or may occur in the future are generally forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, achievements or transactions of the Company and its affiliates to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include: (i) the occurrence of any event, change or other circumstance that could give rise to the termination of any of the agreements entered into with the Company's stakeholders regarding the proposed plan of reorganization, (ii) the risk that the proposed reorganization and the restructuring of its debt will not be accomplished on the terms proposed or at all as a result of future developments, including the Company's future financial performance, decisions of the bankruptcy court and actions and decisions of the Company's various creditor groups, (iii) the Company’s ability to successfully address the debt held by its existing first-lien lenders, and (iv) the impact of the bankruptcy filing and the bankruptcy process on the Company’s operations and financial condition, including its liquidity. Other factors are described in the Company’s prior