Romano’s Macaroni Grill’s amended plan of reorganization confirmed

By Caroline Salls

Pittsburgh, Feb. 7 – Mac Acquisition LLC, also known as Romano’s Macaroni Grill, secured confirmation of its amended plan of reorganization, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Romano’s filed its Chapter 11 cases to implement a balance sheet and operational restructuring “that will allow the debtors to re-emerge as a successful leading casual dining restaurant chain.”

Under the plan, administrative claims, priority tax claims, other priority claims and debtor-in-possession credit agreement claims will be paid in full in cash.

Holders of other secured claims will either be paid in full in cash, receive the proceeds from the sale of the collateral securing the claims or receive the collateral.

Holders of Bank of Colorado claims will receive a share of a $3.5 million cash payment, $41,667 each month for 24 months to be applied to the reduction of the principal amount of the claim, payment of interest only at the rate of 5% on the remaining balance owed and reinstatement of letters of credit that remain issued.

Holders of Riesen claims will receive a share of equity in the reorganized company.

The new equity interests will be subject to dilution if warrants to acquire 5% of the interests granted under the company’s exit facility are exercised.

Holders of general unsecured claims will receive a share of plan trust interests.

Holders of existing equity interests and subordinated claims will receive no distribution.

Mac Acquisition operates full-service casual dining restaurants. The company filed bankruptcy on Oct. 18, 2017 under Chapter 11 case number 17-12224.

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