Buffets third DIP facility amendment approved

By Caroline Salls

Pittsburgh, Dec. 19 - Buffets, Inc. obtained court approval of the third amendment to its debtor-in-possession credit agreement, according to an 8-K filed with the Securities and Exchange Commission.

Under the third DIP loan amendment, the expiration date of the second DIP forbearance agreement was extended to Dec. 17 from Dec. 8.

The amendment also provided for a limited waiver of defaults related to Buffets' failure to meet the minimum consolidated EBITDA covenant under the DIP agreement for the three month fiscal accounting period ended on Oct. 22.

In addition, the third amendment increased the interest rate on an $85 million new money facility by 6.75%, required a partial prepayment of the new money facility and extended the maturity date to April 30, with the option to further extend the maturity date to May 31 with the consent of the required lenders.

Buffets Holdings, a steak-buffet restaurant company based in Eagan, Minn., operates restaurants under the names Old Country Buffet, HomeTown Buffet, Ryan's and Fire Mountain. The company filed for bankruptcy on Jan. 22, 2008, and its Chapter 11 case number is 08-10141.

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