Buffets Holdings, Inc. Receives Interim Court Approval for New Financing.Court Also Authorizes Continued Payment of Employee Wages and Benefits, Payment to Vendors for Post-Petition Goods and Services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. , and Other Actions to Allow the Company's Restaurants to Operate as Usual EAGAN, Minn. -- Buffets Holdings, Inc., ("the Company") announced today that the U.S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. for the District of Delaware today granted interim approval for the Company to access up to $30 million of the $85 million of new funding available under its $385 million debtor-in-possession (DIP) credit facility. The DIP credit facility, which includes $300 million carried over from the Company's pre-petition credit facility, will be used to enhance the Company's liquidity during the reorganization process. A hearing for final approval of the entire DIP facility has been scheduled for February 13, 2008. The Court today also granted the relief the Company requested in a series of court filings known as "First Day Motions." The orders issued by the Court will help the Company continue to operate its business during the reorganization process. Among other things, the Court granted approval for the Company's requests to: * Continue payment of salaries, wages and health and welfare benefits to employees as normal; * Pay vendors for post-petition goods and services provided on or after January 22, 2008; * Continue honoring customer programs and policies, including those pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to direct mail coupons and email coupons, Senior Cards, Gift Cards and special promotions. Buffets Holdings, Inc. and all of its subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code Bankruptcy Code may refer to:
Buffets Holdings' legal advisor is Young Conaway Stargatt & Taylor, LLP LLP - Lower Layer Protocol . The Company's financial advisors are Houlihan Lokey Howard & Zukin Capital, Inc. and Kroll Zolfo Cooper LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . Buffets Holdings' Chapter 11 case in the U.S. Bankruptcy Court for the District of Delaware, in Wilmington, Delaware Wilmington is the largest city in the state of Delaware and is located at the confluence of the Christina River and Brandywine Creek, near where the Christina flows into the Delaware River. has been assigned the number 08-10141, with Chief Judge Mary Walrath presiding. Judge Brendan Shannon heard the First Day Motions in a hearing on January 23. More information about Buffets Holdings' reorganization is available in the Company Information section of the Company's Web site at www.Buffet.com or by calling 1-877-649-4745. Claims information and court filings are available at http://chapter11.epiqsystems.com/buf. About Buffets Holdings Buffets Holdings is the parent company of 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, Inc. employs approximately 37,000 team members and serves approximately 200 million customers annually. For more information about the Company, please visit www.Buffet.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 press release that are not historical facts are forward-looking statements, including references to the Company's plans in the context of a bankruptcy reorganization. These and other forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in, or implied by, the forward looking statements. Factors that may cause actual results to differ from the forward-looking statements in general are described in 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, and no obligation is undertaken to update the information. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion