Cosi Gets Bankruptcy Case Dismissed to Apply for Covid Relief (1)

Cosi Inc. convinced a court to dismiss its Chapter 11 case, allowing the fast-casual restaurant chain to apply for a new, federal relief program for the restaurant industry that’s largely unavailable to bankrupt companies.

The company’s emergency request to dismiss the case is unusual but rational, Judge Brendan L. Shannon of the U.S. Bankruptcy Court for the District of Delaware said at a hearing Tuesday. The judge, in approving the company’s motion, noted that Cosi isn’t eligible to apply for a grant from the Restaurant Revitalization Fund until its reorganization plan is confirmed.

The $28.6 billion RRF relief fund, ...