BL Restaurants Holding, LLC
FILING ALERT: Bar Louie Files Chapter 11 in Delaware; Lenders Agree to Stalking Horse Credit Bid, $22M DIP
Mon 01/27/2020 07:08 AM
Relevant Documents:
Voluntary Petition
First Day Declaration
DIP Motion
Bidding Procedures Motion
BL Restaurants Holdings, an Addison, Texas-based restaurant chain operating and franchising under the “Bar Louie” brand, filed for chapter 11 protection today along with several affiliates in the Bankruptcy Court for the District of Delaware. The company reports $50 million to $100 million in assets and $100 million to $500 in liabilities. The debtor is represented by Klehr Harrison, the case number is 20-10156.
“Rather than commence these chapter 11 cases with no stalking horse,” the debtors signed a stalking horse asset purchase agreement that would see a credit bid by their lenders via BLH Acquisition Co., LLC. The debtors are proposing a bidding process that would see a March 27 sale hearing.
The debtors are seeking approval of $22 million in DIP financing (with $8 million funded on an interim basis) from prepetition lenders, including a rollup. Loan commitments are: $12.8 million by Antares Holdings LP and $9.2 million by MidCap Financial Trust.
As of the end of 2019, the company had 110 owned locations and 24 franchised locations operating in 26 states and the District of Columbia, according to the first day declaration of CRO Howard Meitiner. Meitner notes, however, that immediately prior to the petition the debtors closed 38 of its locations.
The debtor’s capital structure includes:
Proposed dates for the debtors’ sale process are as follows:
Reorg First Day will provide a full summary once the first day briefing is complete.
Voluntary Petition
First Day Declaration
DIP Motion
Bidding Procedures Motion
BL Restaurants Holdings, an Addison, Texas-based restaurant chain operating and franchising under the “Bar Louie” brand, filed for chapter 11 protection today along with several affiliates in the Bankruptcy Court for the District of Delaware. The company reports $50 million to $100 million in assets and $100 million to $500 in liabilities. The debtor is represented by Klehr Harrison, the case number is 20-10156.
“Rather than commence these chapter 11 cases with no stalking horse,” the debtors signed a stalking horse asset purchase agreement that would see a credit bid by their lenders via BLH Acquisition Co., LLC. The debtors are proposing a bidding process that would see a March 27 sale hearing.
The debtors are seeking approval of $22 million in DIP financing (with $8 million funded on an interim basis) from prepetition lenders, including a rollup. Loan commitments are: $12.8 million by Antares Holdings LP and $9.2 million by MidCap Financial Trust.
As of the end of 2019, the company had 110 owned locations and 24 franchised locations operating in 26 states and the District of Columbia, according to the first day declaration of CRO Howard Meitiner. Meitner notes, however, that immediately prior to the petition the debtors closed 38 of its locations.
The debtor’s capital structure includes:
- $48 million in first lien term loans;
- $14.4 million in first lien revolving loans;
- $23.6 million in second lien loans; and
- “....unsecured trade of $8 million, and other potential unsecured debt of approximately $6 million, exclusive of potential lease termination claims.”
Proposed dates for the debtors’ sale process are as follows:
Reorg First Day will provide a full summary once the first day briefing is complete.
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