Perkins & Marie Callender's Exits Ch. 11

Perkins & Marie Callender's Inc., the owner and franchisor of Perkins and Marie Callender's restaurants, has emerged from Chapter 11 bankruptcy protection with its debt load reduced by more than $200 million.

The nearly 600-unit family-dining company filed for bankruptcy on June 13, followed immediately by the shuttering of some 65 restaurants. The court approved its restructuring plan last month.

As previously reported, Wayzata Investment Partners LLC, a private equity firm based in Minneapolis, is the majority stockholder of Perkins & Marie Callender's Holding LLC, the parent of the Perkins and Marie Callender's brands.

The company formerly was owned by New York-based private equity firm Castle Harlan Inc.

Joseph F. Trungale, who served as chief executive and a member of the board from 2005 to 2011, will continue to serve as CEO and chairman of the new board.

At the time of the filing, the company cited the poor economy as the chief reason for its reorganization. Both chains operate a sizeable number of outlets in California and Florida, two states where unemployment and home foreclosure rates are high.

"Our financial restructuring has significantly improved the company's balance sheet, eliminating over $200 million in debt, and optimized its operational structure," Trungale said in a statement. "Perkins will emerge from this process a leaner and stronger company."

New board members include Patrick J. Halloran, Wayzata's managing partner; Joseph M. Deignan, a Wayzata partner; James K. Beltz, a member of the Wayzata investment team; Michael T.P. Sweeney, a shareholder and partner at Goldner Hawn Johnson & Morrison, Inc.; and Karlin A. Linhardt, an industry marketing and business executive.

"I look forward to working closely with the company's new board of managers to develop a strategic plan that will allow the Company to continue offering customers a high-quality family and casual dining experience and to complete the operational turnaround that began earlier this year," Trungale said.

EARLIER:

• Perkins & Marie Callender's files for Ch. 11
• Perkins & Marie Callender's granted $16M
• Perkins to emerge from Ch. 11 this year

Contact Paul Frumkin at paul.frumkin@penton.com.