The companies behind the Perkins and Marie Callender's restaurant chains voluntarily filed for chapter 11 bankruptcy protection on Monday morning in Delaware. The companies, which employ over 12,000 people and generated 2010 revenues of $507 million, blamed their bankruptcy filings on "excessive leverage and poor sales results." They missed a $9.5 million interest payment on their senior notes on April 1, 2011 and acknowledge in court filings that they were also in default of several other provisions of their prepetition credit agreement. However, prior to filing for chapter 11 protection, the companies reached agreement on the terms of a pre-negotiated restructuring with holders of their senior notes.
Read the rest of this post, which details the terms of the restructuring, visit our primary blog: http://blog.ch11cases.com/2011/06/perkins-marie-callenders-restaurant.html