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Buffets Inc. – Bankrupt Again – To Close 81 Locations

EAGAN, MN-The company, which emerged from an earlier bankruptcy in 2009, has again filed for Chapter 11 protection and said it has a restructuring plan already in place.

By Robert Carr | Updated on January 19, 2012

EAGAN, MN-After declaring bankruptcy, for a second time, locally based Buffets Inc. said it is going to close 81 of its 494 restaurants. However, this move is part of a $275 million restructuring plan that will reduce debt and streamline the firm, according to the company.

Buffets and all of its subsidiaries filed voluntary petitions for Chapter 11 bankruptcy, as well as a proposed plan of reorganization that has been worked out with senior lenders holding 83% of the company’s senior debt. Under the proposed plan, the firm will eliminate its outstanding debt of about $245 million, as well as annual interest payments of more than $30 million. The existing lenders will receive 100% of Buffets’ new stock.

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