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LRI Holdings Chapter 11 Petition Filed

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LRI Holdings (Logan’s Roadhouse) and seven affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 16-11819 (Roadhouse Holding). The Company, which operates casual dining steakhouse restaurants, is represented by Edmon L. Morton of Young Conaway Stargatt & Taylor.

According to documents filed with the Court, “Over the course of the last few years, a series of factors has contributed to the Debtors’ need to file these chapter 11 cases, as described below. Critically, the Debtors’ top line sales decreased while their margins also declined as a result of increases in commodities and labor costs. These factors placed significant strain on the Debtors’ business and liquidity needs.”

Court-filed documents further note, “With respect to the Plan contemplated under the RSA, the Noteholders will receive their pro-rata share of equity in the reorganized Debtors in exchange for their Notes, with the exception that holders of less than $50,000 in principal amount of Notes will receive either cash or a third-lien note rather than equity, depending on whether they vote in favor of the Plan….The RSA also contemplates that holders of General Unsecured Claims will receive their pro rata share of a cash pool if, as a class, they vote in favor of the Plan.”

Read more restaurant bankruptcy news.

The post LRI Holdings Chapter 11 Petition Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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