Rubio’s Restaurants pre-packaged plan effective as of Dec. 30

By Sarah Lizee

Olympia, Wash., Dec. 31 – Rubio’s Restaurants, Inc.’s pre-packaged Chapter 11 plan of reorganization went into effect on Wednesday, according to a notice filed with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on Dec. 22, as previously reported.

The company said its capital structure after emergence will consist of a $52 million exit facility with Golub Capital LLC as bookrunner and administrative agent, an investor investment of $6 million and $18 million of reorganized equity interests.

The exit facility, which will consist of a term A loan and revolver, will mature in December 2024. The loans will bear interest at Libor plus 800 basis points.

The plan calls for conversion of about $55 million secured loan claims to equity interests and shares of the exit facility and treatment of about $18 million of secured lender deficiency claims as general unsecured claims.

Each holder of secured loan claims will receive a pro rata share of a portion of the exit facility, after accounting for the exit conversion amount, in a principal amount equal to $37 million, along with the reorganized equity interest.

Each holder of an allowed administrative claim will receive a cash payment in full.

Each holder of an allowed priority tax claim will be treated in line with the terms under section 1129(a)(9)(c) of the Bankruptcy Code.

Each holder of another allowed priority claim will be paid in full in cash or receive other recovery necessary to satisfy section 1129 of the Bankruptcy Code.

On the effective date, all debtor-in-possession claims will convert on a dollar-for-dollar basis into loans under, or otherwise paid or satisfied by, the exit facility in an amount equal to the exit conversion amount.

Each holder of another secured claim will receive payment in full in cash, delivery of the collateral securing their claim and any required interest, reinstatement of their claim or other treatment rendering the claim unimpaired.

All Paycheck Protection Program loan claims, for which the debtors have requested 100% loan forgiveness, will be treated as general unsecured claims to the extent not forgiven.

All general unsecured claims will be discharged and will receive no distribution.

Each intercompany claim will, at the option of the debtors and the consenting secured lenders, be reinstated or canceled, released and discharged without any distribution.

All subordinated claims will be canceled, released and discharged as of the effective date, and will have no further force or effect.

All existing equity interests will be canceled, released and discharged without any distribution.

Intercompany equity interests will be canceled, released and discharged without any distribution, provided that at the option of the debtors and the consenting secured lenders, the intercompany equity interests may be reinstated for administrative convenience.

Rubio’s Restaurants is a fast casual restaurant chain based in Carlsbad, Calif. The company filed bankruptcy on Oct. 26 under Chapter 11 case number 20-12688.

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