CiCis Pizza

CiCis Pizza

Team
Roles
Financial Advisor
  • Expedited track from petition to confirmation
  • Ensured lenders stayed within DIP budget 
  • Company was successfully conveyed to lender/buyer
  • Continued to assist both lender and buyer post-confirmation

The company was a private equity-owned pizza buffet franchisor that was impacted by the COVID-19 pandemic and government shutdown orders, resulting in the private equity sponsor no longer wanting to finance losses. CR3 Partners was retained as financial advisor by a potential buyer to evaluate alternatives, in which all parties agreed to pursue prepackaged Chapter 11 bankruptcy and the buyer agreed to fund a limited DIP loan. The company was expedited to confirmation six weeks after the petition date and successfully conveyed the assets to the buyer, who CR3 continued to assist post-confirmation.

The Situation

  • Private equity-owned pizza buffet franchisor with approximately 300 units
  • Company was impacted by COVID-19 pandemic and government shutdown orders
  • Private equity sponsor no longer wanted to finance losses
  • Secured lender had deficiencies in collateral lien documents

The Work

  • CR3 Partners was retained as financial advisor by an outside restaurant holding company desiring to buy bank debt and evaluate alternatives
  • Evaluated potential value of sale scenario (assets or debt), foreclosure on note, Article 9 proceeding, and Chapter 11 bankruptcy
  • Parties eventually agreed to pursue prepackaged Chapter 11 bankruptcy with buyer agreeing to a limited DIP loan
  • Managed requirements of bankruptcy proceeding on behalf of buyer including managing DIP budget, use of cash collateral, and reporting
  • Worked with lenders on critical vendors and a variety of creditor matters

The Results

  • Worked with counsel and stakeholders to manage bankruptcy process and keep the case on an expedited track of six weeks from petition to confirmation
  • Ensured lenders stayed within DIP budget and provided transparent reporting
  • Company was successfully conveyed to buyer
  • Continued to assist both lender and buyer post-confirmation

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