Sbarro Cleared To Auction Assets

Law360, New York (September 9, 2011, 7:09 PM EDT) -- A New York bankruptcy judge on Friday cleared the way for Sbarro Inc. to auction its assets in an effort to attract a bid that brings in more than the planned debt-for-equity swap with the pizza chain’s lenders.

U.S. Bankruptcy Judge Shelley C. Chapman approved the bidding procedures over objections from creditors who had lobbied for a piecemeal liquidation of the assets, allowing the bankrupt pizzeria to cast around for superior offers to the baseline sale proposed in the Chapter 11 plan.

“The bidding procedures balance...
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