Romano’s Macaroni Grill creditor group blasts plan and DIP facility

By Caroline Salls

Pittsburgh, Nov. 8 – The official committee of unsecured creditors for the Chapter 11 case of Mac Acquisition, LLC, also known as Romano’s Macaroni Grill, objected to the company’s proposed debtor-in-possession financing, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Following years of declining revenues, the committee said Romano filed its bankruptcy cases to complete an expedited restructuring “that will allow current equity to retain ownership of the debtors for no new incremental value while providing unsecured creditors only $500,000.”

The committee said the first step in the company’s reorganization strategy is approval of the DIP facility.

“While the committee recognizes the need for financing, the committee has significant concerns regarding the sufficiency of such financing,” the objection said.

“The proposed budget noticeably fails to provide for the payment of stub rent with respect to the debtors’ restaurant locations around which the debtors seek to reorganize.”

In addition, the creditor group said the budget does not give the committee enough money to fulfill its statutory duty to unsecured creditors.

“The proposed relief fails to ensure these Chapter 11 cases can be run appropriately, provides unnecessary protections to the lenders and improperly limits the committee’s ability to function and maximize value for unsecured creditors,” the committee said in the objection.

A hearing is scheduled for Nov. 13.

Mac Acquisition operates full-service casual dining restaurants. The company filed bankruptcy on Oct. 18 under Chapter 11 case number 17-12224.

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