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CPK Bankruptcy Plan Approved With Lenders to Own Company

Oct. 29, 2020, 9:36 PM

Bankrupt restaurant chain California Pizza Kitchen wins approval of a bankruptcy plan Thursday that will hand ownership of the company to first-lien lenders.

  • The reorganization will cut co. debt obligations by $225m, or about 56%, with maturities pushed out to 2024, according to slides shown in court
    • Plan also provides $15m in new money under a new first-lien term loan exit facility
  • First-lien lenders will get either 100% of equity in new company or 96.5% of equity, depending on whether other creditors stick to a settlement supporting the plan: court filing
  • PREVIOUSLY: California Pizza Gets No Bids, Putting Lenders in ...