Sbarro Says Made-To-Order Ch. 11 Will Slash Debt

Law360, New York (April 4, 2011, 12:14 PM EDT) -- Mall staple Sbarro Inc. on Monday filed a prepackaged Chapter 11 bankruptcy that the Melville, N.Y.-based pizza chain says will slice $200 million in debt from its balance sheet.

In its petition filed in the U.S. Bankruptcy Court for the Southern District of New York, the restaurant chain said it had reached an agreement with all of its its second-lien secured lenders and about 70 percent of its senior noteholders on the reorganization plan.

The plan calls for Sbarro to convert all of its existing second-lien...
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