DENVER - A federal bankruptcy court on Monday granted Quiznos access to $10 million in financing that will help the Denver restaurant chain fund its operations as it restructures the company.
Quiznos filed for Chapter 11 bankruptcy protection on Friday after years of shrinking its locations, saying it hopes to reduce its debt load by more than $400 million.
It filed a reorganization plan along with its court filing and said it plans to continue operations through a commitment of $15 million in debtor-in-possession financing from its senior lenders.
On Monday, the restaurant chain announced it received authorization to use as much as two-thirds of that debtor-in-possession financing — a total that, when combined with cash from ongoing operations, should be able to support the company during restructuring.
It also received interim approval to continue paying wages, salaries, benefits and other employee obligations, and also to continue honoring all current customer and franchisee programs — and to pay certain pre-petition claims arising under the Perishable Agriculture Commodities Act.
Read more in the Denver Business Journal.
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