California Pizza Kitchen is filing for voluntary Chapter 11 protection as part of a restructuring effort.
California Pizza Kitchen (CPK) has entered into a restructuring support agreement with its first lien lenders that will equitize the vast majority of its long-term debt. In order to implement this agreement, CPK has filed for voluntary Chapter 11 protection in the US Bankruptcy Court for the Southern District of Texas.
This pre-negotiated filing represents a deal with CPK’s lenders and is intended to allow the California-based retailer the ability to close unprofitable locations, reduce its long-term debt load, and quickly emerge from bankruptcy as a stronger company.
“Today’s announcement is a step towards a stronger future for California Pizza Kitchen,” said Jim Hyatt, CEO of CPK. “The unprecedented impact of Covid-19 on our operations certainly created additional challenges, but this agreement from our lenders demonstrates their commitment to CPK’s viability as an ongoing business. Throughout this process we will continue to deliver the same innovative, California-inspired cuisine that we have been serving for over 35 years.”
