Memphis / TN. (prn) Perkins + Marie Callender´s Inc. (PMCI), a leading operator of family-dining and casual-dining restaurants, announced that the United States Bankruptcy Court for the District of Delaware has granted approval of the «First Day Motions» filed by the Company to enable it to conduct business in the ordinary course as it seeks to implement a financial and operational restructuring and position itself for long-term financial success.
All of the Company´s operations, including its restaurants, are open and serving customers in the normal course. The Company and its restaurants will continue to provide their customers with a high-quality dining experience during the pendency of its restructuring process and beyond.
On June 13, 2011, as part of its voluntary filing for reorganization under chapter 11 of the U.S. Bankruptcy Code, the Company submitted First Day Motions designed to support its domestic customers, vendors and employees. At a hearing on June 14, 2011, the Court granted permissions for the Company, among other things, to:
- Continue honoring its gift cards, valid coupons, charity certificates and other customer programs;
- Pay its employees in the usual manner and continue their primary benefits;
- Continue to maintain its cash management system;
- Pay certain pre-petition claims of its vendors, suppliers, shippers, carriers, freight forwarders and warehousemen; and
- Pay post-petition invoices/claims for delivery or shipment of goods or services received or rendered to the Company post-petition.
In addition, the Court authorized the Company to access up to 16 million USD under a new 21 million USD Debtor-in-Possession credit facility (DIP Financing) on an interim basis in order to continue to finance its operations and make essential payments, such as funding employee payrolls, paying taxes and purchasing necessary goods and services. The Company will seek final approval of the entire DIP Financing at a future hearing before the Court.
CEO Jay Trungale: «The authorization granted by the Court is an important first step in our restructuring process and will facilitate the smooth functioning of the Company as the process advances. With the support of our secured and unsecured noteholders, we will continue to work to complete our restructuring process as soon as possible and emerge in a strengthened financial position that will allow us to more effectively compete and achieve long-term success».
