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Real Mex Files Chapter 11 with DIP Support from Tennenbaum Capital Partners, Z Capital Group

August 06, 2018, 07:08 AM
Filed Under: Bankruptcy

RM Holdco LLC and its subsidiaries, the operator of Chevys Fresh Mex, El Torito, and other full-service Mexican restaurant brands, announced that it has executed an Asset Purchase Agreement with an affiliate of Z Capital Group, LLC.  In order to facilitate the sale, the Company has voluntarily filed to reorganize under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.

Real Mex's restaurants will remain open and operating as usual during the Ch. 11 process and customers can expect to continue to enjoy the great food, festive environment, and genuine hospitality for which the Company is known.

Under the asset purchase agreement, Z Capital Croup has agreed to purchase substantially all of Real Mex's assets and assume certain liabilities, subject to higher or otherwise better offers.  Z Capital Croup is currently a partial owner in the Company and, along with co-owner Tennenbaum Capital Partners, has agreed to provide $5.5 million in Debtor-in-Possession financing to ensure an efficient bankruptcy and sale process.

"Today's filing is an important step in completing the sale process that Real Mex began late last year," said CEO Bryan Lockwood.  "The support from Z Capital and Tennenbaum will help minimize any disruptions and ensure that the process is seamless for our guests, employees, and vendors.  We're looking forward to completing this transaction as swiftly as possible and emerging from Ch. 11 in a stronger financial position, poised for future growth."


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