Sbarro: Court approves shorter-than-requested exclusivity extension

By Caroline Salls

Pittsburgh, July 26 - Sbarro, Inc. has been granted an extension to its exclusive periods to file and solicit votes on a plan of reorganization, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The company's exclusive filing period was extended to Oct. 31 from Aug. 2 and the solicitation period to Dec. 31 from Oct. 1.

As previously reported, the company asked the court to extend the plan-filing period to Nov. 30 and the solicitation period to Jan. 29, 2012.

According to the motion, Sbarro is soliciting proposals from existing stakeholders and an interested third-party strategic bidder to sponsor a reorganization plan that will serve as the foundation for an auction process.

At the same time, the company is launching a renewed strategic and financial third-party process.

Although the stakeholders "have not expressed uniform agreement" on the scope or timetable related to the marketing/plan sponsorship process, the company said it has established a timetable that will allow it to move forward quickly with its reorganization efforts.

The company said it needs the exclusivity extension to complete this process and allow it to succeed.

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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