Village Inn Stays Alive After Owner’s Reorg Plan Approved

American Blue Ribbon Holdings LLC, the owner of the Village Inn and Bakers Square restaurant chains, won bankruptcy court approval of its reorganization plan, keeping the business alive and providing a distribution to creditors.

In issuing her approval, Judge Laurie S. Silverstein of the U.S. Bankruptcy Court for the District of Delaware Monday overruled an objection by the Justice Department’s bankruptcy watchdog over third-party liability releases.

“If I don’t confirm this plan, I don’t know what plan I could approve,” she said at a virtual hearing.

Under the plan, the company’s best performing restaurants will continue to operate, saving many ...