Cicis Pizza

The Situation

  • Private equity-owned pizza buffet franchisor with approximately 300 units, primarily franchised
  • 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

Role(s)

  • Finanacial Advisor

The Work

  • CR3 Partners was retained as financial advisor by restaurant 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 limited DIP loan
  • Managed requirements of 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 process and keep case on expedited track of six weeks from petition to confirmation
  • Ensured lenders stayed within DIP budget and provided transparent reporting
  • Company was successfully conveyed to lender/buyer
  • Continued to assist both lender and buyer post-confirmation

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Overview

  • Restaurant
  • Bankruptcy Advisory

Engagement Team