Sbarro receives approval for plan of reorganization, clearing way for company to emerge from Chapter 11 on Nov. 28, 2011
MELVILLE, New York
November 17, 2011
– Sbarro, Inc., along with its domestic subsidiaries (the “Company”), announced today that U.S. Bankruptcy Court for the Southern District of New York has approved the Company’s Plan of Reorganization, clearing the way for Sbarro to emerge from Chapter 11 on November 28, 2011.
“Today’s ruling marks an important milestone in our efforts to emerge from the bankruptcy process as a stronger business that will be better positioned to serve our customers,” said Nicholas McGrane, Interim President and Chief Executive Officer of Sbarro, Inc. “When we emerge from bankruptcy, our debts will have been reduced by approximately 70%, and we will have access to $35 million in fresh capital provided by our new ownership group. The support and commitment of our investors has helped us move through the restructuring process relatively quickly, and thanks to the continued efforts of our employees, our business is performing solidly as we head into our busiest period of the year.”
The Company is being advised by Kirkland & Ellis LLP, its legal counsel, and Rothschild Inc., its financial advisor. Cantor Fitzgerald Securities, the agent for Sbarro’s first lien lenders and post-petition debtor-in-possession lenders, is being advised by Davis Polk & Wardwell LLP, its legal counsel, and Conway Del Genio Gries & Co., LLC, its financial advisor.
For more information about the reorganization, please visit: www.sbarro.com.
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.
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