Nov. 17, 2011
Sbarro Inc., along with its domestic subsidiaries, has announced that the U.S. Bankruptcy Court for the Southern District of New York has approved its plan of reorganization, clearing the way for Sbarro to emerge from Chapter 11 on Nov. 28, 2011.
“Today’s ruling marks an important milestone in our efforts to emerge from the bankruptcy process as a stronger business that will be better positioned to serve our customers,” said Nicholas McGrane, interim president and CEO of Sbarro Inc.
McGrane added that when the company emerges from bankruptcy, its debts will have been reduced by about 70 percent and Sbarro Inc. will have access to $35 million in capital provided by its new ownership group.
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.
“The support and commitment of our investors has helped us move through the restructuring process relatively quickly, and thanks to the continued efforts of our employees, our business is performing solidly as we head into our busiest period of the year,” McGrane said.
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