New Delaware Chapter 11 Filing – RM Holdco LLC

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RM Holdco LLC (dba Real Mex Restaurants), along with five subsidiaries and affiliates, has filed a petition for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-11795).  The Debtors, one of the largest full service Mexican casual dining chain operators in the United States, operates eighty restaurants, primarily through three brand names: (1) El Torito; (2) Chevys Fresh Mex; and (3) Acapulco.  According to the First Day Declaration, the Debtors—despite being profitable and attaining steady improvement in their operating results—are unable to service their current debt load and have filed for Chapter 11 intending to pursue a sale of substantially all of their assets under section 363 of the Bankruptcy Code.  The Debtors are seeking approval of $5.5 million Debtor-in-Possession financing to be provided by two of the Debtors’ pre-petition lenders—one of whom, Z Capital Group, is the proposed stalking horse bidder.   Kurtzman Carson Consultants is the proposed claims and noticing agent.  The cases have been assigned to the Honorable Mary F. Walrath.

Contact Norman L. Pernick, G. David Dean or Myles R. MacDonald for more information regarding this matter.  Please note, however, that Cole Schotz P.C. does not represent the debtors in these cases and cannot respond to questions directed toward the debtors.

As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.

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