On September 16, 2020, Judge Laurie S. Silverstein of the United States Bankruptcy Court for the District of Delaware entered an order approving the Second Amended Combined Disclosure Statement and Chapter 11 Plan of Reorganization (the “Plan”) for American Blue Ribbon Holdings, LLC, et al. (“Debtors”), as proposed by the Debtors.  The Debtors effectuated a reorganization through the Plan that will allow the company to emerge as an ongoing business with a restructured balance sheet, as well as exit financing to ensure that the reorganized Debtors have a source of capital to fund distributions to creditors and go-forward operations.  Furthermore, general unsecured creditors are expected receive between 10-15% recovery on their claims.  The reorganization likewise preserves nearly 2,000 jobs that would otherwise have been lost had the Debtors been forced to liquidate, as has occurred in several other restaurant bankruptcy cases since the COVID-19 pandemic began.

The Plan went effective on October 2, 2020.

The Debtors filed voluntary petitions under Chapter 11 of the Bankruptcy Code on January 27, 2020.  The Debtors operate family dining businesses under the brand names Village Inn and Bakers Square and have a manufacturing operation under the brand name Legendary Baking that produces pies for the family dining business.  Legendary Baking also sells pies to non-Debtor affiliates O’Charley’s and Ninety-Nine restaurants, third party restaurants, and independent bakers.

Bayard attorneys Evan Miller, Daniel Brogan, Greg Flasser, and Scott Jones served as co-counsel with Nelson, Mullins, Riley & Scarborough LLP to the Debtors.  Bayard and Nelson, Mullins, Riley & Scarborough LLP remain as counsel to the Reorganized Debtors.  Bayard’s bankruptcy group has extensive experience in the restaurant space, in addition to the retail and grocer industries.

For confirmation order with plan, click here.