Sbarro Secures $35M DIP Package In Ch. 11

Law360, New York (May 3, 2011, 6:22 PM EDT) -- A New York bankruptcy judge gave final approval to Sbarro Inc.'s $35 million debtor-in-possession financing package Tuesday as an attorney revealed that a foreign strategic buyer was courting the bankrupt pizza chain.

Sbarro attorney Edward O. Sassower of Kirkland & Ellis LLP told U.S. Bankruptcy Judge Shelley C. Chapman that the unnamed buyer had not made a concrete offer, emphasizing that Sbarro sought to maintain a "dual track" in pursuing its debt-for-equity prepackaged plan, which is supported by second-lien secured lenders and over two-thirds of senior...
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