Buffets accepting bids for assets, agrees to abate plan proceedings

By Caroline Salls

Pittsburgh, Oct. 28 – Buffets LLC requested court approval of the bid procedures for the proposed sale of substantially all of its assets, according to a motion filed Thursday with the U.S. Bankruptcy Court for the Western District of Texas.

Buffets said it believes a sale process will end a dispute with its official committee of unsecured creditors regarding asset value faster than any other resolution method.

“At this time, the debtors have not withdrawn their plan from consideration, but will agree to abate the plan proceedings while this sale process takes place,” the company said in the motion.

Under the proposed procedures, bids would be due by 6 p.m. ET on Dec. 19, and an auction will be held on Dec. 29, if necessary.

Overbids must be made in minimum increments of $250,000.

Buffets said Alamo CRG LLC will be allowed to credit bid the full $1 million plus interest amount of a debtor-in-possession loan, as well as the $2 million plus interest amount of a working capital loan.

Based in Hollywood Park, Texas, Buffets operates a chain of buffet-style restaurants. The company re-entered Chapter 11 bankruptcy on March 7, 2016 under the case number 16-50557.

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