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Dec. 23 (Bloomberg) -- Quiznos Corp., the closely held sandwich chain, reached an agreement with creditors that may help it avoid bankruptcy.
The restructuring deal with a “significant majority” of first- and second-lien lenders will provide $150 million in new equity capital, the Denver-based company said today in a statement. The pact will cut $300 million from Quiznos’ debt load, almost one-third of the total, and make Avenue Capital Group LLC the majority owner.
Quiznos will shelve a backup plan to file for Chapter 11 bankruptcy if it can persuade all of the lien holders to accept the restructuring. The company also intends to ask for concessions from other creditors, it said in the statement.
“The terms of the pre-packaged Chapter 11 plan would provide less favorable treatment for the lenders and certain other creditors and landlords than under the proposed out-of- court exchange offer,” the company said.
Quiznos owners include CCMP Capital Advisors LLC, Quiznos founder Rick Schaden and Consumer Capital Partners, the private equity firm he started.
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