Los Angeles — California Pizza Kitchen (CPK) has successfully completed its financial restructuring process and emerged from Chapter 11. CPK completed a debt-for-equity transaction and now has a substantially reduced debt load and increased liquidity. Upon emergence, the company eliminated more than $220 million of existing funded debt from its capital structure.
The company had filed for bankruptcy in July 2020 with plans to close 200 stores.
CPK completed its restructuring with the full support of its creditors and previous equity holders. Looking ahead, the company is focused on expanding its global franchise footprint; continuing its commitment to “Cali Health” inspired menu innovation; investing more heavily in marketing and digital; and accelerating its recent off-premise success during COVID-19.
“We are excited to embark on this next chapter for CPK and build on our current business momentum,” says Jim Hyatt, CEO of CPK. “We want to thank our partners, creditors and equity holders for helping make our emergence plan so successful. We are a stronger and healthier company as a result of the restructuring.”
Kirkland & Ellis served as legal counsel to CPK, Guggenheim Securities, LLC served as its financial advisor and investment banker, and Alvarez & Marsal, Inc. served as restructuring advisor.
The ad hoc group of first lien lenders were represented by Gibson, Dunn & Crutcher LLP as legal counsel and FTI Consulting, Inc. as financial advisor.
In 1985, California Pizza Kitchen (CPK) opened its first restaurant in Beverly Hills, Calif. Today CPK is a global brand serving creative California cuisine in more than 240 restaurants in 10 countries and U.S. territories. For more information, visit cpk.com.
SOURCE: California Pizza Kitchen