Printer Friendly

FURR'S/BISHOP'S ANNOUNCES AMENDMENT OF CAFETERIA OPERATORS INDENTURE AND DEFERRAL OF INTEREST

 LUBBOCK, Texas, Dec. 31 /PRNewswire/ -- Furr's/Bishop's, Incorporated (NYSE: CHI) announced that its limited partnership subsidiary, Cafeteria Operators, L.P., has entered into an amendment of the indenture for Cafeteria Operators' $192.9 million of 11.00 percent Senior Secured Notes due June 30, 1998. The amendment, which was approved by each of the holders of the 11.00 percent Senior Secured Notes, provides, among other things, that the installment of interest on the Senior Secured Notes aggregating approximately $10.6 million and due on Dec. 31, 1993 shall be deferred until the earlier of Jan. 15, 1995 and the date on which all of the principal of the Senior Secured Notes shall become due and payable. The deferred interest installment shall bear interest at 13 percent per annum.
 Kevin E. Lewis, chairman of FBI, said, "Furr's/Bishop's is gratified to have amended the indenture for the 11 percent Senior Secured Notes. The deferral of the $10.6 million interest payment to 1995 will allow the company to continue to upgrade its facilities. The amendment is also an important step in the process of restructuring Furr's/Bishop's capital structure. We intend to continue discussions during the first quarter of 1994 with the holders of the 11 percent Senior Secured Notes, Cavalcade Foods' bank lender and General Electric Pension Trust with respect to its arbitration award. We are also continuing to explore certain transactions with our equity structure with an eye toward recapitalizing the company in the future."
 Pursuant to the amendment, the company has agreed that prior to June 30, 1994, it will not be permitted to incur any new unsecured indebtedness or make investments in certain newly created subsidiaries. The indenture has also been amended to, among other things, make the minimum Consolidated EBITDA (as defined in the indenture) requirement and the ratio of EBITDA to interest expense convenant and the ratio of EBITDA plus rentals to sum of certain amounts covenant applicable to Cafeteria Operators in each case for the four fiscal quarters ending on or about Jan. 1, 1994.
 The indenture also has been amended to prohibit payments made prior to Jan. 15, 1995, without the approval of all the holders of the 11 percent Senior Secured Notes in respect of the previously announced $5.4 million arbitration award (or any judgment thereon) granted to the General Electric Pension Trust and in respect of principal, interest or other amounts (other than prepayments arising as a result of the sale of certain specified real estate) on the $9.6 million of 9 percent senior secured bank debt of Cavalcade Foods, Inc. guaranteed by Furr's/Bishop's, Incorporated and FBLP. Such bank debt requires interest payments on March 31 and September 30 of each year and is due and payable on June 30, 1998 subject to earlier payment in the event of a sale of certain specified real estate or a sale or refinancing of Cavalcade Foods.
 Furr's/Bishop's, Incorporated is one of the largest operators of cafeterias and buffets in the United States operating 143 cafeterias, buffets and specialty restaurants in 15 states in the Southwest, West and Midwest under the names "Furr's", "Bishop's", "Zoo-Kini's" and "El Paso Bar-B-Que."
 -0- 12/31/93
 /CONTACT: Joe W. Conner, chief financial officer of Furr's/Bishop's, 806/792-7151/
 (CHI)


CO: Furr's/Bishop's, Incorporated ST: Texas IN: LEI SU:

SP -- NY008 -- 8284 12/31/93 10:07 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 31, 1993
Words:565
Previous Article:BETTER HEALTH CITED AS MAIN REASON FOR LOSING WEIGHT AND INCREASING PHYSICAL ACTIVITY IN 1994
Next Article:NEW YEAR'S EYE SURVEY: 1994 WILL BE A BETTER YEAR FOR LANDING JOB'
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters