Real Mex filed for Chapter 11 restructuring in October, which it attributed to the company’s high debt load, certain above-market rents and a weak economy, Real Mex operates about 141 restaurants; restaurant has new owner, a Delaware bankruptcy court judge on Friday approved the sale of the parent company, the sale also included Real Mex Foods, a production facility and foodservice distributor.
Real Mex Restaurants Inc. has a new owner and is expected to emerge from bankruptcy soon.
A Delaware bankruptcy court judge on Friday approved the sale of the parent company to the El Torito, Acapulco and Chevys Fresh Mex chains to a group of noteholders that includes Tennenbaum Capital Partners, Z Capital Partners and J.P. Morgan Investment Management, under the entity RM Opco LLC.
The bid was worth about $129 million, including $49 million in cash and an $80 million credit bid, along with assumption of certain liabilities, according to court documents. Under terms of the deal, RM Opco was expected to hold an 85-percent stake in Real Mex once the deal is closed.
Majority owner Sun Capital Partners initially acquired a controlling interest in Real Mex in 2006 in a $359 million deal. Later, Sun Capital relinquished control for several years after a debt-for-equity swap, only to… continue reading
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