Perkins & Marie files final disclosure statement, readies solicitation

By Jim Witters

Wilmington, Del., Sept. 9 - Perkins & Marie Callender's Inc. submitted its approved second amended disclosure statement for its second amended joint plan of reorganization with the U.S. Bankruptcy Court for the District of Delaware on Friday.

The statement was approved by Judge Kevin Gross on Thursday, but the debtors needed time to finalize the document.

The disclosure statement filed Friday contains the recommendation of the creditors committee. The committee recommended that the plan be accepted by the holders of allowed general unsecured claims and allowed senior notes claims.

The committee made no recommendation concerning the holders of an allowed general unsecured claim eligible to make an equity election or concerning holders of senior notes claims eligible to make a cash election.

The committee also stated that the current reorganization plan "presents substantial improvements over the plan filed with the Bankruptcy Court on July 14." The current plan provides increased cash recovery for holders of allowed general unsecured claims who are to receive cash. The aggregate pool increased to $7 million from $1.5 million.

The deadline for voting is Oct. 14.

A confirmation hearing for the second amended plan of reorganization is scheduled for 10 a.m. ET on Oct. 31. Debtors' attorney Hollace Topel Cohen previously said the debtors are targeting a Nov. 29 effective date.

Treatment of creditors includes:

• 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 note holders will receive equity in the reorganized company;

• General unsecured creditors can 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, a Memphis-based operator and franchiser of full-service restaurants, filed for bankruptcy on June 13. The Chapter 11 case number is 11-11795.

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