Lenders now hold most of equity; $220 million in debt eliminated in restructuring
California Pizza Kitchen has completed its bankruptcy restructuring with an equity transaction that eliminated more than $220 million in existing debt from its capital structure, the company said Monday.
The Los Angeles-based casual-dining brand said it “now faces no near-term debt maturities” and that substantially all of CPK’s equity is now held by CPK’s pre-petition lenders.
CPK had filed July 30 for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Southern District of Texas. An Oct. 8 auction was canceled after no qualified bidders emerged.
“We want to thank our partners, creditors and equity holders for helping make our emergence plan so successful,” said Jim Hyatt, CEO of CPK, said in a statement.
“We are a stronger and healthier company as a result of the restructuring,” Hyatt said, “and we look forward to delivering more of our innovative, California-inspired cuisine to our loyal CPK guest community.”
CPK completed its restructuring last month with the support of its creditors and previous equity holders.
The company said that, going forward, it was focused on expanding global franchising, innovating its menu with such items as the recently introduced plant-based “Don’t Call Me Chicken” pizza and accelerating its recent off-premise sales increases during the COVID-19 pandemic.
Kirkland & Ellis served as legal counsel to CPK, Guggenheim Securities, LLC served as its financial adviser and investment banker, and Alvarez & Marsal Inc. served as restructuring adviser.
First-lien lenders were represented by Gibson, Dunn & Crutcher LLP as legal counsel and FTI Consulting, Inc. as financial adviser.
California Pizza Kitchen, founded in 1985, has more than 240 restaurants in 10 countries and U.S. territories.
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