Sbarro Ch. 11 Plan Would Slash Debt By 73%

Law360, New York (August 10, 2011, 12:08 PM EDT) -- Sbarro Inc. filed a proposed disclosure statement and reorganization plan in New York on Wednesday that would slash the bankrupt pizza chain's debts by 73 percent and set up its first-lien lenders as a stalking horse bidder.

Sbarro's plan would cut its debt from about $405 million to $110 million, according to the proposed plan, which would leave it with less debt than was called for in its prepackaged Chapter 11 plan, filed after rising food costs and falling foot traffic in malls pushed it into...
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