The Court’s confirmation of CPK’s chapter 11 plan positions the company for sustainable and profitable long-term growth
The U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, issued a ruling today confirming California Pizza Kitchen ("CPK")’s Chapter 11 plan of reorganization. The consensual plan of reorganization is the culmination of months of negotiations with creditors throughout CPK’s capital structure, including a settlement with the official committee of unsecured creditors, and received near unanimous support from all parties entitled to vote on the plan.
CPK utilized Chapter 11 to achieve a significant reduction in its debt load and a right sizing of its lease footprint. Upon emergence, CPK will eliminate more than $220 million of existing funded debt from its capital structure and will face no near-term debt maturities. CPK will emerge with total debt of $177 million including additional exit financing, providing the capital to support CPK’s business and build on the company’s current business momentum.
"We are pleased to have completed this process rapidly and thank our guests, franchise partners, employees and vendor partners for their continued support," said Jim Hyatt, CEO of CPK. "Looking ahead we are focused on delivering our innovative, California-inspired cuisine to our CPK guests safely and accelerating the momentum we have created in our off premise business during COVID. We are energized by the opportunity ahead of us and look forward to this new phase of growth."
CPK intends to emerge from Chapter 11 in November 2020 with the full support of its creditors and equity holders.
Kirkland & Ellis is serving as legal counsel to CPK, Guggenheim Securities, LLC is serving as its financial advisor and investment banker, and Alvarez & Marsal, Inc. is serving as restructuring advisor.
The ad hoc group of first lien lenders are represented by Gibson, Dunn & Crutcher LLP as legal counsel and FTI Consulting, Inc. as financial advisor.
About California Pizza Kitchen
In 1985, California Pizza Kitchen (CPK) opened its first restaurant in Beverly Hills and introduced diners to innovative California-style pizza. With a passion for combining fresh, seasonal ingredients with flavor inspirations from around the world, today CPK is a global brand serving creative California cuisine in over 200 restaurants in 8 countries and U.S. territories. From signature, hand-tossed pizzas and high-quality main plates to inventive better-for-you options, Lunch Duos, premium wines and handcrafted beverages, CPK adds an imaginative twist to create a memorable dining experience. For more information, visit cpk.com. Connect with CPK on Twitter at @calpizzakitchen, Instagram at @cpk, and Facebook at facebook.com/californiapizzakitchen. Download the CPK Rewards™ app for iOS and Android to earn rewards for dining creatively, pay by mobile, order online and more.
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