California Pizza Kitchen announced today that they have entered into a restructuring support agreement with their senior lenders that will equitize the vast majority of their long term debt.
In order to implement the agreement, CPK filed for voluntary Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas.
The restructuring agreement includes a commitment for $46.8 million in new financing which will enable ongoing operation of CPK restaurants.
This proactive filing will allow CPK the ability to reduce their long term debt load and emerge as a much stronger company.
The company anticipates a short stay in Chapter 11 and expects to progress on an expedited timeline, their our goal is to complete the Chapter 11 process in under three months.