The U.S. Bankruptcy Court in the Central District of California has approved the financial reorganization plans of Sizzler International Inc., and its domestic subsidiary, Sizzler Restaurants International Inc., that will allow the emergence from Chapter 11 protection and creditors to be paid in full.
Sizzler's American operations include 275 restaurants, 13 of which are in Utah in Bountiful, Cedar City, Layton, Logan, Ogden, Orem, Provo, Salt Lake City, West Valley City, Sandy, St. George and West Jordan.Making the announcement via a media release was James A. Collins, Sizzler International's chairman who recently assumed the additional position of chief executive officer. He said as a result of various actions taken by the company, it will show improved operating results in the fiscal year ending April 30, 1998.
By getting the plan approved, Collins said the company achieved what it set out to do by filing for Chapter 11 protection. "It has permitted the orderly downsizing of our company, helped return the domestic restaurant business to profitability and allowed Sizzler to effectively manage the disposal of closed restaurant assets and related liabilities."
He said the closing of underperforming restaurants in the United States has allowed the company to improve its financial position. The company applied for Chapter 11 protection a year ago.
The reorganization plan calls for full payment of creditors' claims, estimated to be $70 million, to be secured by and paid in full primarily from international operations.
The SRI plans, covering the domestic restaurant subsidiary, provides full payment of creditors' claims, which the company estimates at $25 million.