A sale hearing is scheduled for February 10 at which the Bankruptcy Court will be asked to approve the bid, which was submitted in accordance with auction procedures previously approved by the Court.
Court approval and satisfaction of various other conditions would clear the way for the purchaser to close the sale within approximately 30 days after the sale hearing. Following the sale the Real Mex restaurants and food production facility will operate outside of Chapter 11 with a substantially improved balance sheet.
Real Mex has been operating its restaurants and food production subsidiary as usual while working to improve its capital structure under Chapter 11. The note holders include investors that were in the company’s pre-petition capital structure.
Real Mex Chairman & CEO, David Goronkin, said: “We remain confident in our turnaround plans and are looking forward to putting this challenging but necessary process behind us. We are close to accomplishing our objectives in the Chapter 11 process and have the right teams in place to move our brands and company forward. A stronger financial foundation will allow us to accomplish this more quickly.”
Real Mex’s decision to restructure was driven by high debt, certain above-market rents and a weak economic environment, particularly in California where most of its restaurants are located, according to the company.
Source: Real Mex
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