CPK Bankruptcy Plan Approved With Lenders to Own Company

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 ...