Sbarro Drops Rights Offering To Court Bidder

Law360, New York (May 19, 2011, 1:43 PM EDT) -- Sbarro Inc. said Thursday that it dropped a $30 million equity support agreement to "explore other strategic alternatives," including preliminary interest from an unnamed qualified bidder that has come sniffing around the bankrupt pizza chain.

While the company said it is still negotiating a stand-alone plan with its prepetition creditors, shareholders MidOcean Partners III LP and Ares Corporate Opportunities Fund II LP agreed to drop the $30 million rights offering they'd given the company after the weight of rising food costs and falling foot traffic in...
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