August 5, 2018 – Privately-Held RM Holdco LLC and its subsidiaries, including Real Mex Restaurants, announced that it has executed an Asset Purchase Agreement with an affiliate of Z Capital Group, LLC. In order to facilitate the sale, the Company voluntarily filed to reorganize under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware, lead case number 18-11795.
The Company, the operator of Real Mex Restaurants, Chevys Fresh Mex, El Torito and other full-service Mexican restaurant brands, is represented by Robert S. Brady of Young Conaway Stargatt & Taylor. Under the asset purchase agreement, Z Capital Group has agreed to purchase substantially all of Real Mex’s assets and assume certain liabilities, subject to higher or otherwise better offers. Z Capital Group is currently a partial owner in the Company and, along with co-owner Tennenbaum Capital Partners, has agreed to provide $5.5 million in debtor-in-possession financing to ensure an efficient bankruptcy and sale process.
“Today’s filing is an important step in completing the sale process that Real Mex began late last year,” said CEO Bryan Lockwood. “The support from Z Capital and Tennenbaum will help minimize any disruptions and ensure that the process is seamless for our guests, employees, and vendors. We’re looking forward to completing this transaction as swiftly as possible and emerging from Ch. 11 in a stronger financial position, poised for future growth.”
Real Mex Restaurants previously filed bankruptcy in 2011 and was acquired by RM Opco, an affiliate of RM Holdco. RM Holdco’s petition notes between 10,000 and 25,000 creditors; estimated assets between $50 million and $100 million; and estimated liabilities between $100 million and $500 million.
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