New York-based Sbarro Inc., along with its domestic subsidiaries, has successfully emerged from Chapter 11, making its Plan of Reorganization effective today.
The move reduces the company’s debt by more than 70 percent and provides access to $35 million of new capital from its new ownership group.
“As Sbarro emerges from Chapter 11 today we are a stronger, better capitalized, and more competitive company with a solid financial foundation for future growth,” said Nicholas McGrane, interim president and CEO of Sbarro.
Sbarro began its preparation for Chapter 11 in April. By mid-May, it had ended the bankruptcy process and was seeking buyers.
In August, Sbarro outlined its restructuring plan that would give ownership of the company to its senior lenders. The plan of reorganization was filed with the U.S. Bankruptcy Court for the Southern District of N.Y. in October.
“With the support of our investors, vendors and landlords, and the hard work of our valued employees and franchisees, we are pleased that Sbarro has successfully navigated this process in a relatively short time period while operating our business as usual and without interruption,” McGrane said. “Our business is performing well, and as we enter our busiest period of the year, we look forward to building on our positive momentum and continuing to deliver great food and service to our customers.”
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