Bankruptcy Court OKs Sbarro's reorganization plan
Nov. 18, 2011
MELVILLE, NY – Sbarro Inc. announced on Nov. 17 that US Bankruptcy Court for the Southern District of New York has approved the company’s plan of reorganization, clearing the way for Sbarro to emerge from Chapter 11 on Nov. 28.
“[This] ruling marks an important milestone in our efforts to emerge from the bankruptcy process as a stronger business that will be better positioned to serve our customers,” said Nicholas McGrane, interim president and chief executive officer. “When we emerge from bankruptcy, our debts will have been reduced by approximately 70 percent, and we will have access to $35 million in fresh capital provided by our new ownership group. The support and commitment of our investors has helped us move through the restructuring process relatively quickly, and thanks to the continued efforts of our employees, our business is performing solidly as we head into our busiest period of the year.”