To implement the restructuring, Garden Fresh has filed voluntary petitions for reorganization under Chapter 11 protection. Piper Jaffray has been engaged to assist with the anticipated sale of the business to second lien lenders, subject to higher and better bids.
The Company also plans to close between 20 and 30 underperforming restaurants to strengthen its financial position, pending approval from the court overseeing the reorganization. Garden Fresh said it has received commitments for debtor-in-possession (DIP) financing from second lien lenders to fund post-petition operating expenses, including its obligations to employees and suppliers. The Company does not expect the filing to have meaningful impact…
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