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THE RESTAURANT ENTERPRISES GROUP INC. PREPACKAGED PLAN CONFIRMED

 IRVINE, Calif., Jan. 7 /PRNewswire/ -- The Restaurant Enterprises Group Inc. announced that its prepackaged plan of reorganization was confirmed today by the U.S. Bankruptcy Court for the District of Delaware. Mike Casey, executive vice president and chief financial officer, said, "The confirmation of the prepackaged plan is a major step toward completion of the overall restructuring. We anticipate completing the restructuring by the end of January 1994."
 In the restructuring, Apollo Advisors L.P., Green Equity Investors L.P. and Foodmaker will acquire the company and concurrent therewith, the company will acquire Chi-Chi's Inc., the operator or franchiser of 237 full-service Mexican restaurants, from Foodmaker Inc. The company, which will be renamed Family Restaurants Inc., will be one of the largest operators of full-service restaurants in the United States with 682 full-service family and Mexican restaurants in 34 states. The company's family restaurants operate primarily under the Carrows and Coco's formats and the Mexican restaurants operate under the Chi-Chi's, El Torito and Casa Gallardo names.
 Completion of the restructuring is subject to a number of conditions, including the sale of approximately $400 million of new notes in a registered public offering being managed by Donaldson, Lufkin & Jenrette, Morgan Stanley & Co. and Smith Barney Shearson Inc.
 The company said that the prepackaged plan was approved by 100 percent of the holders of debt securities and preferred stock that voted on the plan and by holders of 98 percent of the common stock that voted. Pursuant to the prepackaged plan, holders of 12 1/4 percent senior subordinated notes due 1996 will receive $939.26 in cash per $1,000 note plus cash interest on $939.26 from May 19, 1993, at a rate not greater than 10 1/2 percent, holders of the 12 3/4 percent subordinated notes due 1998 will receive $646.18 in cash per $1,000 note plus cash interest on $646.18 from May 19, 1993, at a rate not greater than 10 1/2 percent, holders of preferred stock will receive $17.88 in cash per share and holders of class D common stock will receive $.50 in cash per share.
 A registration statement relating to the new notes has been filed with the Securities and Exchange Commission but has not yet become effective. The new notes may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the new notes in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
 -0- 1/7/94
 /CONTACT: Mike Casey, executive VP, CFO of Restaurant Enterprises, 714-852-5763/


CO: The Restaurant Enterprises Group; Apollo Advisors L.P.; Green
 Equity Investors L.P.; Foodmaker ST: California IN: LEI SU: RCN


NY-JB -- LA011 -- 0161 01/07/94 12:49 EST
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Publication:PR Newswire
Date:Jan 7, 1994
Words:501
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