Printer Friendly

THE RESTAURANT ENTERPRISES GROUP INC. ANNOUNCES PLANNED RESTRUCTURING

THE RESTAURANT ENTERPRISES GROUP INC. ANNOUNCES PLANNED RESTRUCTURING
 IRVINE, Calif., Aug. 20 /PRNewswire/ -- Restaurant Enterprises Group Inc. (REG) today announced that it has engaged the investment banking firms of Morgan Stanley & Co. Inc. and Nomura Securities International Inc. to assist management in the analysis of various restructuring alternatives and in the development of a specific restructuring plan. REG said that work on the plan, which is expected to be implemented before year-end, has already begun.
 The company said the restructuring plan would allow it to satisfy the Dec. 15, 1992 interest obligation on its $275 million in subordinated debt and develop an appropriate long-term capital structure which will give REG financial flexibility and allow it to accomplish its strategic objectives. The company added that it is currently implementing a series of actions which are intended to enhance revenues and generate cash.
 REG stated that one of these actions is to complete the conversion of approximately 100 of the 109 California Bob's Big Boy and Allie's family restaurants, acquired earlier this year, to its existing Coco's and Carrows concepts. The company said it is pleased with the excellent results, to date, of the 25 completed conversions, as well as the performance of its entire Family Restaurant Division despite the current weakness of the California economy. However, these results have been overshadowed by the lower sales and profits associated with the company's other restaurant operations.
 For its second quarter ended June 29, 1992, the company reported sales of $245 million and income before interest and taxes of $2.3 million. Income before interest and taxes was reduced by interest expense primarily associated with the company's 1986 leveraged buyout, resulting in a net loss of $9.3 million. Last year in its second quarter, the company had sales of $227.9 million, income before interest and taxes of $8.6 million and a net loss of $2.4 million. For the first six months of 1992, sales were $468.8 million, income before interest and taxes was $3.8 million and net loss was $19.7 million. For the first six months last year, sales were $446.1 million, income before interest and taxes was $13.8 million and net loss was $8.3 million.
 The Restaurant Enterprises Group Inc. operates 604 restaurants in 24 states and the District of Columbia. In addition to its family dining concepts (Coco's, Carrows, jojos, Bob's and Allie's), REG's restaurant operations include dinnerhouses (Reuben's and Charley Brown's), Mexican dinnerhouses (El Torito and Casa Gallardo), numerous unique specialty dinnerhouses, and a licensing arrangement under which Coco's Japan operates or sub-licenses over 200 Coco's restaurants in Japan and South Korea.
 -0- 8/20/92
 /CONTACT: Martin M. Casey, executive VP and CFO of REG, 714-863-6401/ CO: Restaurant Enterprises Group ST: California IN: LEI SU: RCN


JB-LS -- LA029 -- 1972 08/20/92 20:28 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 20, 1992
Words:475
Previous Article:COLWELL-KIRTLAND INTERNATIONAL ESTABLISHES EUROPEAN HEADQUARTERS
Next Article:NATIONAL HERITAGE HEADS PARTNERSHIP FOR SALE OF CHAPARRAL HOTEL
Topics:


Related Articles
JB'S RESTAURANTS ANNOUNCES FIRST QUARTER RESULTS
TPI ENTERPRISES RETAINS STEPHENS INC. AS FINANCIAL ADVISOR TO EXPLORE RESTRUCTURING ALTERNATIVES
THE RESTAURANT ENTERPRISES GROUP INC. ANNOUNCES 1991 RESULTS
BAYPORT RESTAURANT GROUP REPORTS 400 PERCENT INCREASE IN PROFITS FOR FIRST QUARTER ENDED MARCH 30
CALIFORNIA BEACH RESTAURANTS ANNOUNCES COMPLETION OF AGREEMENT WITH ITS BANK
CHART HOUSE POSTS FOURTH QUARTER RESULTS
CARL KARCHER ENTERPRISES ANNOUNCES A RESTRUCTURING AND COST CUTTING PLAN
CARL KARCHER ENTERPRISES ANNOUNCES FISCAL 1993 RESULTS
REG ANNOUNCES RESTRUCTURING PROPOSAL
THE RESTAURANT ENTERPRISES GROUP INC. PREPACKAGED PLAN CONFIRMED

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters