San Diego, California, U.S.A.-based Rubio’s Restaurants, which filed for bankruptcy on 5 June, has estimated its liabilities total between USD 100 million (EUR 93.2 million) and USD 500 million (EUR 466 million), and that it has as many as 25,000 creditors.
The 30 largest unsecured claims total USD 34.7 million (EUR 32 million), according to a new report from credit reporting firm Seafax. However, those creditors do not include food suppliers.
The judge in the U.S. Bankruptcy Court for the District of Delaware, where Rubio’s filed for bankruptcy, signed final orders on 28 June authorizing Rubio’s to pay up to USD 3.25 million (EUR 3 million) to “certain critical vendors, 503(b)(9) claimants, and Perishable Agricultural Commodities Act (PACA)/Packers and Stockyards Act (PASA) claimants,” per Seafax.
The judge also authorized Rubio’s to continue operating its existing cash management system, to pay pre-petition wages and other compensation, and to pay pre-petition claims. Rubio’s can also obtain post-petition financing and have access to a USD 4 million (EUR 3.7 million) new money multiple-draw credit facility and a USD 8 million (EUR 7.5 million) "roll-up" loan.
Rubio’s Restaurants, conducting brick-and-mortar business as Rubio's Coastal Grill and Rubio's Fresh Mexican Grill, estimates that it has USD 10 million (EUR 9.3 million) to USD 50 million (EUR 47 million) in assets.
The restaurant chain entered into a stalking-horse purchase agreement to sell to an entity formed and controlled by its existing lender in an attempt to sell off its business, Rubio’s said in a June press release.
Rubio’s will also be filing a motion to implement bidding procedures that allow other companies to submit bids through a court-supervised process to purchase the assets being sold. It has retained Chicago, Illinois, U.S.A.-based Hilco Corporate Finance to conduct a sale process under the bidding procedures so it can seek higher or better offers from prospective bidders interested in purchasing the business.
After closing 48 restaurants, Rubio’s said its remaining 86 locations in the U.S. states of California, Arizona, and Nevada will continue normal operations during the bankruptcy proceedings.
