Quiznos reorganization plan confirmed, disclosure statement approved

By Kali Hays

New York, May 12 - Quiznos received confirmation of its amended plan of reorganization and approval of its related disclosure statement, according to a Monday order with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, holders of unsecured claims will receive a share of general unsecured claims cash distribution and holders of second-lien facility claims will receive a share of remaining equity.

Other key terms of the plan include the following:

• 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 canceled and discharged, and holders will receive no distribution.

Upon filing for bankruptcy, the company said its senior lenders voted overwhelmingly in favor of the pre-packaged restructuring plan, which is intended to increase Quiznos' flexibility as it executes operational enhancements designed to strengthen performance and revitalize the Quiznos brand.

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

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