Sbarro lender Column Investments wants court to declare loan valid

By Lisa Kerner

Charlotte, N.C., July 22 - Sbarro, Inc. lender Column Investments S.a.r.l. filed a complaint for declaratory relief against the company and its affiliates asking the court to declare its $25.5 million second-lien loan a valid debt not subject to recharacterization, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Column provided the loan to Sbarro in March 2009 in order to enable Sbarro to comply with the demands of the first-lien lenders to reduce the debt under the first-lien credit facility, the filing said.

Sbarro, a Melville, N.Y.-based quick-service Italian restaurant chain, filed for bankruptcy on April 4. The Chapter 11 case number is 11-11002.

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