Sbarro, Italian Restaurant Chain, Seeks Bankruptcy Protection (Bloomberg)

[eppur_se_muova]

By Tiffany Kary and Phil Milford - Apr 4, 2011 6:30 AM CT

Sbarro Inc., operator of more than 1,000 pizza restaurants worldwide, sought Chapter 11 bankruptcy protection after sales slowed and cheese costs rose, and said it has a plan to eliminate about $200 million in debt.

The chain listed assets of $471 million and debt of $486.6 million in documents filed today in U.S. Bankruptcy Court in New York. Sbarro, based in Melville, New York, said it had as many as 10,000 creditors.

The largest unsecured creditor was listed as Bank of New York as indenture trustee for $150 million in securities, according to the filing.

“We believe this plan represents the best opportunity for Sbarro to clear a path for future growth by restructuring its debt in an effective and timely manner,” Nicholas McGrane, interim president and chief executive officer of Sbarro Inc., said in a statement. “We are a strong company with one of the most recognizable restaurant brands in the world.”

The company is asking a judge to approve a $35 million loan to help carry it through bankruptcy.
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more: http://www.bloomberg.com/news/2011-04-04/sbarro-files-for-bankruptcy-protection-after-restaurant-chain-s-sales-slid.html

[daa]

1. Another private equity deal gone bust

you know, the kind where they "buy" the company, pay themselves big bonus and dividends and load the company with crushing debt.

[xchrom]

2. a bailout for cheese

'The company is asking a judge to approve a $35 million loan to help carry it through bankruptcy. '