Quiznos amends plan treatment for unsecured and second-lien creditors

By Caroline Salls

Pittsburgh, May 8 - Quiznos filed an amended plan of reorganization Thursday with the U.S. Bankruptcy Court for the District of Delaware that amends the proposed treatment of general unsecured claims and pre-bankruptcy second-lien facility claims.

Under the amended plan, holders of unsecured claims will receive a share of a general unsecured claims cash distribution.

Meanwhile, holders of second-lien facility claims will receive a share of remaining equity.

Under the original plan, holders of unsecured claims, including second-lien facility claims, were scheduled to receive their share of company specified litigation proceeds unless they made a stock in lieu election.

The terms of the amended plan include:

• Holders of first-lien facility claims will receive a share of a$200 million five-year amended first-lien credit facility and equity;

• Holders of unsecured claims will receive their share of a general unsecured claims distribution;

• Holders of second-lien facility claims will receive a share of remaining equity;

• On account of Vectra's marketing fund trusts facility secured claim, the trustee for those trusts and Vectra will enter into an amended credit agreement, and Vectra will forgo any distribution on its guaranty claim;

• Intercompany interests will be reinstated; and

• Interests in the holding company and subordinated claims will be cancelled and discharged, and holders will receive no distribution.

Quiznos, a Denver-based quick-service restaurant chain, filed for bankruptcy March 14. The Chapter 11 case number is 14-10543.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.