Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Food & Staples Retailing

QCE Finance Chapter 11 Petition, Plan Filed

Privately-held QCE Finance (dba Quiznos) and fourteen affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 14-10543. The Company, which operates quick-service food chains, is represented by Mark D. Collins of Richards Layton & Finger and Ira S. Dizengoff of Akin Gump Strauss Hauer & Feld. The Company, which also filed a Joint Chapter 11 Prepack and related Disclosure Statement, concurrently announced that its senior lenders have voted overwhelmingly in favor of a prepackaged restructuring plan that will reduce its debt by more than $400 million. QCE Finance notes, “The plan is intended to increase the Company’s flexibility as it executes operational enhancements designed to strengthen performance, revitalize the Quiznos brand and reinforce its promise as a fresh, high-quality and great-tasting alternative to traditional fast food offerings.” The Company states that all but seven of its nearly 2,100 restaurants are independently owned and operated by franchisees in the U.S. and 30 other countries around the world. As separate businesses, these restaurants are not a part of the Chapter 11 proceedings and are open and operating as usual. “The actions we are taking are intended to enable Quiznos to reduce our debt, execute a comprehensive plan to further enhance the customer experience, elevate the profile of the brand and help increase sales and profits for our franchise owners,” comments Stuart K. Mathis, Quiznos chief executive officer. In conjunction with the Chapter 11 filing, the Company has received a commitment for $15 million in debtor-in-possession financing from its senior lenders, which, subject to Court approval, will be available to support its ongoing operations during the proceedings. QCE Finance indicated total assets of $500,000 to $1 million on its Chapter 11 petition.

Read more Bankruptcy News