Bankruptcy Debrief for the Week of November 5th


Papa Gino’s Enters Chapter 11 With Plan for Sale

The Massachusetts-based Papa Gino’s and D’Angelo Grilled Sandwiches chain filed for chapter 11 to allow for a sale of the business to private equity firm Wynchurch. Days before the filing, the company closed 47 Papa Gino’s and 45 D’Angelo Grilled Sandwiches locations determined to be underperforming.

As of the petition date, there were 141 owned and operated locations as well as 37 franchise and license locations. Roughly 3,000 people are employed by Papa Gino’s across all locations, comprising about 700 full-time and 2,300 part-time employees.

The company’s debt includes roughly $18.5 million of first-lien debt, $34.2 million of second-lien debt, $39.9 million of mezzanine debt and about $9 million of unsecured trade debt. Currently, Bunker Hill Capital holds the equity of the company.

Wynnchurch, holder of first-lien debt, is proposed to be the stalking horse bidder at auction for the company with a credit bid of $20 million.

Read CFO Corey Wendland’s declaration in support of the first-day motions here.

View the Chapter 11 petition here.


Aegean Marine Petroleum Sails Into Bankruptcy Protection

Aegean Marine Petroleum Network sought chapter 11 protection to seek value maximizing options for all creditors after facing financial difficulties. The Greece-based international marine fuel logistics company’s strategic partner, Mercuria Energy Group, has offered to provide a large $532 million debtor-in-possession loan to fund the company’s operations in bankruptcy. Mercuria has also agreed to act as the stalking horse bidder for Aegean Marine Petroleum’s business as a going concern.

As of the filing, the company had approximately $855 million of funded debt including  $131.7 million under  the U.S. Credit Facility, $249.6 million under the Global Credit Facility, $206.6 million under 10 secured term loan facilities and $267 million of unsecured convertible notes.

Read Restructuring Advisor Andrew Hede’s declaration in support of the first-day motions here.

View the Chapter 11 petition here.


Taco Bueno Files for Bankruptcy With Plan for Quick Debt-for-Equity Swap

Taco Bueno filed a prepacked chapter 11 plan to make way for a debt-to-equity process with creditor Sun Holdings. This would leave Sun Holdings as the equity owner of the reorganized Taco Bueno in what is proposed to be a quick process that benefits the creditors and the longevity of the Taco Bueno restaurants. The current equity owner, TPG Capital, supports the transaction.

Sun Holdings currently owns over 800 franchised restaurants including Arby’s, Golden Corral, Burger King and others. Sun Holdings who stands as a prepetition secured creditor, was not the original lender, but purchased the debt prior to the bankruptcy. Sun Holdings holds about $131 million in amount of prepetition debt, originally issued by TB Corp.

As of the filing, the company operates roughly 169 restaurants in Texas, Oklahoma, Missouri, Kansas, Arkansas and Louisiana.

Read advisor Haywood Miller’s declaration in support of the first-day motions here.

View the Chapter 11 petition here.


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