Perkins & Marie Callender's completes restructuring, exits bankruptcy

By Caroline Salls

Pittsburgh, Nov. 30 - Perkins & Marie Callender's Inc. completed its financial restructuring and emerged from Chapter 11 bankruptcy on Wednesday, according to a company news release.

The U.S. Bankruptcy Court for the District of Delaware confirmed the company's plan of reorganization on Oct. 31.

As previously reported, private investment funds managed by Wayzata Investment Partners LLC are the majority stockholders of Perkins & Marie Callender's Holding LLC, which is now the parent company of Perkins & Marie Callender's group of companies.

The company said Joseph F. Trungale, who served as chief executive officer and as a member of the board of directors from 2005 to 2011, will continue to serve as CEO and will be the chairman of the new board of managers.

In addition to Trungale, the board will include Wayzata managing partner Patrick J. Halloran, Wayzata partner Joseph M. Deignan, Wayzata investment team member James K. Beltz, shareholder and Goldner Hawn Johnson & Morrison, Inc. partner Michael T.P. Sweeney and industry marketing and business executive Karlin A. Linhardt.

"Our financial restructuring has significantly improved the company's balance sheet, eliminating over $200 million in debt, and optimized its operational structure," Trungale said in the release.

"Perkins will emerge from this process a leaner and stronger company. We are now better positioned than ever before to continue as a leading force in the family-dining and casual-dining restaurant industry."

Treatment of creditors

Treatment of creditors under the confirmed plan includes the following:

• Holders of administrative claims, priority tax claims, convenience claims and other priority claims will be paid in full in cash;

• Senior secured note holders will receive $103.06 million of new 14% secured term loans due Nov. 30, 2015;

• Holders of other secured claims will either have their claims reinstated, be paid in full in cash or receive the collateral securing their claims;

• Unsecured noteholders will receive equity in the reorganized company;

• General unsecured creditors will elect to receive either cash or equity in the reorganized company - creditors who elect the cash option would receive cash equal to the lesser of 10% of their claims and their share of $1.5 million;

• Holders of subordinated claims and equity interests in the holding company will receive no distribution; and

• Holders of subsidiary debtor equity interests will remain effective and outstanding.

Perkins & Marie Callender's is a Memphis-based operator and franchiser of full-service restaurants. The company filed for bankruptcy on June 13. The Chapter 11 case number is 11-11795.

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