Rubio's Coastal Grill Can Tap $4.5M Of Ch. 11 Financing

Law360 (October 27, 2020, 9:59 PM EDT) -- The bankrupt parent of eatery chain Rubio's Coastal Grill received permission Tuesday from a Delaware judge to borrow $4.5 million of its debtor-in-possession financing despite her concerns that unsecured creditors had not yet had a chance to weigh in on the loan.

During a virtual first-day hearing, U.S. Bankruptcy Judge Mary F. Walrath clashed with attorneys for Rubio's Restaurants Inc. over a request in the DIP motion to extend liens to the post-petition lenders on previously unencumbered assets, saying they could be the only source of recovery for general unsecured creditors. 

Rubio's secured the $8 million total loan package from prepetition...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!