Buffets, Inc. Elects not to Pay Interest on Senior Notes.EAGAN, Minn. -- Buffets, Inc. announced today that is has elected to take advantage of the 30-day grace period with respect to the missed interest payment due January 2, 2008 on its 12.5% Senior Notes due November 1, 2014. The aggregate amount of this interest payment is approximately $18.75 million. The company is taking advantage of the grace period to pursue restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). discussions with its creditors. There can be no assurance that the company will reach an agreement on any such restructuring. Failure to make the interest payments by January 31, 2008 would constitute an event of default under the indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. for the Senior Notes that would permit the indenture trustee or holders of 25% or more of the Senior Notes to accelerate the maturity of the Senior Notes. In addition, failure to make the interest payment within the grace period would constitute an event of default under Buffets $640 million credit facility that would permit the administrative agent or lenders holding in excess of 50% of the indebtedness outstanding under the credit facility to terminate any commitments to extend credit to the company and accelerate the maturity of the indebtedness outstanding. About Buffets Buffets, Inc., the nation's largest steak-buffet restaurant company, currently operates 626 restaurants in 39 states, comprised of 615 steak-buffet restaurants and eleven Tahoe Joe's Famous Steakhouse[R] restaurants, and franchises sixteen steak-buffet restaurants in six states. The restaurants are principally operated under the Old Country Buffet Old Country Buffet is a buffet-style, sit-down restaurant chain headquartered in Eagan, Minnesota with locations throughout the United States. Menu Items Old Country Buffet restaurants feature a wide spread of menu items, in the following categories: Its wide selection of food include pizza, hot dogs, hot wings, sliced ham among many others. [R], Ryan's[R] and Fire Mountain[R] brands. Buffets employs approximately 37,000 team members and serves approximately 200 million customers annually. The company is currently offering multiple unit area development agreements to experienced restaurant operators across Florida and several western states. For more information about the Company, please visit www.Buffet A buffet is a meal serving system where patrons serve themselves. It is a popular method of feeding large numbers of people with minimal staff. The term is also used to describe a sideboard, an antique form of furniture which was sometimes used to offer the dishes of a buffet meal .com and www.Ryansrg.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement The statements contained in this release that are not historical facts are forward-looking. The risks and uncertainties involving forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. include, but are not limited to, changes in general and economic conditions, consumer confidence, discretionary spending patterns, the public's perception of buffets-style food service, negative publicity, competition, seasonality, weather, inflation, fuel and utility costs, the availability and cost of food products and restaurant labor, minimum wage increases, regulations, public health developments, interest rate fluctuations, political environment (including terrorism and wars), the degree of success integrating the Ryan's restaurants and capturing synergies, our ability to satisfy lending covenants and meet our debt service obligations. For a detailed discussion of risks and uncertainties, refer to the "Risk Factors / Forward-Looking Statements" section in Buffets Holdings' Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission on September 25, 2007 and in Buffets Holdings' Quarterly report on Form 10-Q Form 10-Q See 10-Q. filed with the Securities and Exchange Commission on November 5, 2007. The statements in this release reflect Buffets Holdings' current beliefs based upon available information. Developments subsequent to this release are likely to cause these statements to become outdated out·dat·ed adj. Out-of-date; old-fashioned. outdated Adjective old-fashioned or obsolete Adj. 1. , and no obligation is undertaken to update the information. |
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