Emerges from Chapter 11 Course of Having Lowered Debt Obligations by Roughly $705 Million
Chuck E. Cheese and Peter Piper Pizza to Proceed Serving Households because the World’s Best Household Restaurant and Leisure Manufacturers
IRVING, Texas, Dec. 30, 2020 /PRNewswire/ — CEC Leisure (“CEC” or the “Firm”) right this moment introduced its emergence from Chapter 11 safety. This milestone marks the profitable completion of the Firm’s monetary restructuring course of and implementation of the Plan of Reorganization confirmed by the U.S. Chapter Courtroom on December 15, 2020. CEC emerges with a considerably strengthened monetary place, roughly $705 million of debt obligations eradicated from its steadiness sheet, and the total assist of its new Board of Administrators and possession.
“We’re thrilled to have emerged from our monetary restructuring course of and look ahead to starting a brand new chapter as a stronger and more healthy firm nicely positioned to execute on our long-term objectives,” mentioned David McKillips, CEC’s Chief Government Officer. “Underneath new possession, and with the management of our new Board, the CEC staff is happy to proceed delivering reminiscences, leisure, and pizza for teenagers and households around the globe for generations to return. Behind the power of our whole staff and world-class manufacturers, we look ahead to rising by way of key alternatives and implementing our strategic plan.”
On account of the contributions and assist of key constituents, the Firm’s steadiness sheet has been strengthened by the discount of roughly $705 million of debt obligations and at emergence the Firm has over $100 million of liquidity to assist operations and progress initiatives.
CEC has emerged with a brand new Board of Administrators that may encompass seven members together with:
David McKillips, CEO of CEC;
Joshua Acheatel, Senior Funding Skilled at Monarch Different Capital LP;
Howard Altman, Chief Funding Officer of Metropoulos & Co.;
Patrick J. Bartels Jr., Managing Member of Redan Advisors;
Clifford Hudson, beforehand Chairman of the Board and CEO of Sonic Corp.;
Lance Milken, Founding father of Ripple Industries LLC, and previously a Senior Associate at Apollo World Administration, Inc.; and
A further director appointed in accordance with the restricted legal responsibility firm settlement of CEC Holdings.
As of December 30, the Firm and its franchisees function 559 Chuck E. Cheese and 122 Peter Piper Pizza venues. A listing of open places and companies offered may be discovered on https://www.chuckecheese.com/reopening-directory and https://www.peterpiperpizza.com/locations. The Firm plans to proceed opening further places as it’s protected to take action, steadily bringing extra workers again to work and offering households with healthful leisure over nice meals.
Filings and extra data on the transaction consummated in reference to the Firm’s emergence from chapter may be discovered at https://cases.primeclerk.com/cecentertainment/.
CEC Leisure was suggested on this course of by Weil, Gotshal & Manges LLP as authorized counsel, PJT Companions as funding banker, FTI Consulting as monetary advisor, and Hilco Actual Property as actual property marketing consultant. The Advert Hoc Group of First Lien Lenders was suggested on this course of by Akin Gump Strauss Hauer & Feld LLP as authorized counsel and Houlihan Lokey Capital, Inc. as monetary advisor.
This press launch contains statements which will represent “forward-looking statements” that aren’t historic details, together with statements in regards to the beliefs, expectations, estimates, future plans, and techniques of CEC together with, however not restricted to, statements in regards to the Chapter 11 instances. These statements are based mostly on present expectations and assumptions, which administration believes are affordable, and on data at present out there to administration, however are essentially topic to numerous dangers and uncertainties. Along with the chance that these assumptions show to be inaccurate, elements that would trigger precise outcomes to vary materially from these contemplated by the forward-looking statements embody elements disclosed in CEC’s annual report on Kind 10-Ok, as amended, for the 12 months ended December 29, 2019, and subsequent stories filed with the Securities and Trade Fee (the “SEC”), which can be found on CEC’s web site at https://cecentertainment.gcs-web.com/investor-overview and on the SEC web site at www.sec.gov. Extra elements embody, however aren’t restricted to, these related to the Chapter 11 instances commenced on June 24, 2020 and people related to the COVID-19 world pandemic. CEC undertakes no obligation to publicly replace or revise any forward-looking statements, whether or not as a result of new data, future occasions or in any other case, besides to the extent required by regulation.
In regards to the Firm
CEC Leisure, LLC is a nationally acknowledged chief in household eating and leisure with each its Chuck E. Cheese and Peter Piper Pizza eating places. Because the place the place one million pleased birthdays are celebrated yearly, Chuck E. Cheese’s aim is to create constructive, lifelong reminiscences for households by way of enjoyable, meals, and play and is the place The place A Child Can Be A Child®. Dedicated to offering a enjoyable, protected setting, Chuck E. Cheese helps shield households by way of industry-leading applications reminiscent of Child Verify®. As a robust advocate for its native communities, Chuck E. Cheese has donated greater than $16 million to varsities by way of its fundraising applications. Peter Piper Pizza options eating, leisure and carryout with a neighborhood pizzeria really feel and “pizza made recent, households made pleased” tradition. Peter Piper Pizza takes satisfaction in delivering high quality meals and enjoyable that reconnects household and associates. With a daring design and up to date format, an open kitchen revealing a lot of their handcrafted meals preparation, the most recent expertise and video games, and beer and wine for adults, Peter Piper Pizza eating places attraction to oldsters and youngsters alike. The Firm and its franchisees function a system of 559 Chuck E. Cheese and 122 Peter Piper Pizza venues, with places in 47 states and 15 overseas international locations and territories. For extra data, go to chuckecheese.com and peterpiperpizza.com.
For CEC Leisure, LLC
Buyers / Media
Angelo Thalassinos / Sarah Rosselet
SOURCE CEC Leisure