Sbarro’s Chapter 11 bankruptcy approved by U.S. court
Posted on Monday, June 2nd, 2014 at 6:48 pm
A U.S. bankruptcy judge in Manhattan has approved the Chapter 11 bankruptcy plan filed by American pizza restaurant chain Sbarro Inc., an article by the Reuters stated. This is Sbarro’s second bankruptcy in three years.
Under the bankruptcy documents signed by Judge Martin Glenn, it will allow the pizza franchise to reduce its $148 million debt amount by over 85%.
After reorganization, a large amount of Sbarro’s loan debt will be converted to equity, and creditors that were unsecured will receive an estimated $1.25 million. Sbarro had initially filed for bankruptcy protection in 2011.
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