The U.S. Bankruptcy Court for the Southern District of Texas, Houston Division confirmed California Pizza Kitchen (CPK)’s Chapter 11 plan of reorganization. The consensual plan of reorganization is the culmination of months of negotiations with creditors throughout CPK’s capital structure, including a settlement with the official committee of unsecured creditors, and received near unanimous support from all parties entitled to vote on the plan.
CPK utilized Chapter 11 to significantly reduce its debt load and a right size its lease footprint.
Upon emergence, CPK will eliminate more than $220 million of existing funded debt from its capital structure and will face no near-term debt maturities. CPK will emerge with total debt of $177 million including additional exit financing, providing the capital to support CPK’s business and build on the company’s current business momentum.
CPK intends to emerge from Chapter 11 in November 2020 with the full support of its creditors and equity holders.