GRLLQ files for Chapter 11 protection:
biz.yahoo.com
Tuesday April 16, 4:42 pm Eastern Time
Press Release
SOURCE: Roadhouse Grill, Inc.
Roadhouse Grill, Inc., Announces Reorganization Under Chapter 11 To Strengthen Its Financial Position and Support Its Continued Growth
Company Showing Positive Cash Flow in 2002; Company Gives Court A Plan to Satisfy Creditors
POMPANO BEACH, Fla.--(BUSINESS WIRE)--April 16, 2002-- As part of its focus on strengthening its financial position and continuing its growth, Roadhouse Grill, Inc., (Nasdaq:GRLL - news), a full-service, casual-dining restaurant operator, today announced its reorganization under Chapter 11 of the U.S. Bankruptcy Code with the U.S. Bankruptcy Court for the Southern District of Florida. Chapter 11 is the reorganization provision of the U.S. Bankruptcy Code that enables companies to continue regular operations, restructure past-due payments and emerge as profitable.
Roadhouse Grill, with positive cash flow and profits in January and February 2002, will continue to conduct business as usual without interruption. The company already has successfully negotiated with most of its creditors to restructure and repay its debts. One group of unsecured creditors, all affiliated with CNL, refused to settle out of court for past-due invoices, thereby forcing Roadhouse Grill into Chapter 11.
Employees will continue to receive their wages and benefits with no anticipated changes. Customers will continue to enjoy the same high-quality dining experiences.
``Roadhouse Grill is in a very strong position as it moves through Chapter 11 reorganization and we expect this strategic restructuring process will help us to emerge a stronger, more dynamic enterprise,'' said Ayman Sabi, president and chief executive officer of Roadhouse Grill. ``We are in a better position than most companies entering Chapter 11 because we have already presented the Court with a plan to satisfy creditors. Most companies present these plans several months after filing.''
Sabi added: ``We plan to use this time in Chapter 11 to complete the voluntary restructuring program that we began 14 months ago, which is nearing completion. This program brought significant costs, but is helping us enhance our customers' experience at our restaurants, build a more solid management team and create a world-class training program.
``Going forward, all our vendors and creditors can have the confidence that they will be paid in full in a timely manner, in accordance with our contracts with each.
``Our singular focus is on building a strong future and we are confident about the new initiatives we are implementing, such as broadening our U.S. - and international-expansion efforts and offering new menu items for our customers,'' said Sabi.
Roadhouse Grill will add lunch and dinner entrees and desserts and is doubling the number of specialty drinks it offers. It will continue its popular ``Kids Eat Free on Tuesdays'' promotion.
Roadhouse Grill Inc. (http://www.roadhousegrill.com) currently owns and operates 73 full-service, casual-dining restaurants and franchises several other locations. The Roadhouse Grill concept offers a ``rambunctious'' style consistent with the company's motto: ``Eat, Drink and Be Yourself.'' It owns 35 company restaurants in Florida and other restaurants in Alabama, Arkansas, Georgia, Louisiana, Mississippi, New York, North Carolina, Ohio and South Carolina. The company plans to continue expanding the scope of its franchising effort in the U.S. and anticipates opening restaurants in Europe in conjunction with its joint venture with Cremonini Group, a leading publicly traded Italian company specializing in the food-service industry in Europe.
Certain statements in this release are forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. This press release includes forward-looking statements based largely on the Company's expectations which are subject to a number of risks and uncertainties, including but not limited to economic, competitive and other factors affecting the Company's operations, markets, products and services, risks associated with growth, risks associated with media campaigns, risks associated with our ability to support our franchise organizations, the ability to obtain financing, the successful training and retention of personnel and other factors discussed elsewhere in this release and the documents filed by the Company with the Securities and Exchange Commission. Many of these factors are beyond the Company's control. Actual results could differ materially from these forward-looking statements. In light of these risks and uncertainties, there can be no assurance that the forward-looking information contained in this press release will, in fact, occur. |
