(Updates with assets in second paragraph and sales decline in third paragraph.)
Oct. 4 (Bloomberg) -- RM Restaurant Holding Corp., owner of the Mexican restaurant chains Chevys, El Torito and Acapulco, sought bankruptcy protection from creditors saying the U.S. economic slowdown led to a decline in sales.
The Cypress, California-based company, with 178 restaurants, listed assets of $272.2 million and debt of $249.9 million in a filing in U.S. Bankruptcy Court in Wilmington, Delaware. Sun Capital Partners Inc. and Farallon Capital Management LLC own stakes in the company, according to court papers.
“Coinciding with the broader economic downturn in the U.S.” the restaurants “have experienced fewer dining guests,” Chief Financial Officer Richard P. Dutkiewicz, representing affiliates including Real Mex Restaurants Inc., said in a filing. Sales fell to $478 million in 2010 from about $553 million in 2008, he said.
A $34.6 million loan represents the largest unsecured claim against the company, according to court papers. Wilmington Trust NA is the administrative agent for the loan. Blue Cross of California is listed as the largest trade creditor, with a $1.1 million claim.
Real Mex sold $130 million of senior secured notes on July 1 that priced at a discount of 90 cents on the dollar to yield 18 percent, according to data compiled by Bloomberg.
RM Restaurant hired law firms Milbank Tweed Hadley & McCloy LLP and Pachulsky Stang Ziehl & Jones and financial adviser Imperial Capital LLC. The company has restaurants in a dozen states from New York to California, as well as Japan and Turkey.
The cases are In re RM Restaurant Holding Corp., 11-bk- 13123, and Real Mex Restaurants Inc., 11-bk-13122, U.S. Bankruptcy Court, District of Delaware (Wilmington).
--Editors: Anthony Aarons, Stephen Farr
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