This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Sbarro Returns to Chapter 11 with Prepack

NEW YORK (The Deal) -- Pizza chain Sbarro has ordered up another slice of Chapter 11 with a prepackaged reorganization plan supported by lenders holding 98% of its debt.

The Melville, N.Y., company filed a petition on Monday, March 10, in the U.S. Bankruptcy Court for the Southern District of New York in Manhattan. Judge Martin Glenn is assigned to the case.

Sbarro, which restructured in the same court in 2011, in a Monday statement said the supporting lenders would provide $20 million in debtor-in-possession financing that would convert to exit financing. The plan would eliminate the company's $140 million in outstanding secured debt, and "priority lenders" would receive substantially all of the reorganized company's equity. Overall, the plan would eliminate more than 80% of the company's outstanding debt, "resulting in a much stronger organization."

"The agreement among the company's lenders is an indication of the support and confidence they have in the growth strategies developed by the new management team over the past nine months," CEO David Karam said in the release. "The board and senior management team are committed to ensuring Sbarro's future growth and success, and today's filing is a necessary step to achieve those goals."

Must Read: eBay Rejects Icahn Nominees as Fight Goes to Shareholders

The Deal Pipeline reported in February that the company was closing 155 of its company-owned North American eateries. The company has 800 remaining locations, consisting of 250 company-owned stores in the U.S.; 175 franchised locations in the U.S. and Canada; and more than 400 franchised locations overseas. The company said it opened 81 new stores in 2013.

Sbarro spokesman Jonathan Dedmon of Dilenschneider Group Inc. could not say whether the prepackaged plan had been filed with the court.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.19 -1.04%
FB $118.06 0.54%
GOOG $695.81 0.50%
TSLA $222.56 -4.20%
YHOO $35.97 -0.11%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs