Sbarro Presses For Ch. 11 Auction Plan

Law360, New York (September 7, 2011, 3:01 PM EDT) -- Sbarro Inc. on Tuesday urged a New York bankruptcy judge to brush aside objections from creditors and move ahead with the pizza chain's proposed auction that is underpinned by a planned debt-equity swap with lenders.

The struggling pizzeria's motion said the proposed reorganization plan and overbid auction process would maximize value and creditor recoveries. While the lender-sponsored plan cuts Sbarro’s debt from about $405 million to $110 million, the debtor also seeks to solicit higher bids through an auction where lenders have offered to provide bidders...
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