Chuck E. Cheese in talks with lenders about financing deals
The company is exploring both in-court restructuring and bankruptcy
Chuck E. Cheese, the restaurant chain and popular children's party venue, is in talks with its lenders to raise money to avoid filing for bankruptcy, according to people familiar with the matter.
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At the same time the Irving, Texas-based food-and-games chain has also approached lenders in recent weeks to gauge their interest in providing a $200 million loan to finance a stay in bankruptcy, according to one of the people familiar with the matter.
The discussions are taking place as a decision looms over whether to make a $1.9 million quarterly payment on loans due at the end of June, one of the people familiar with the matter said.
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Some lenders and bondholders are trying to put together a deal to provide the company more capital to help it stay out of bankruptcy as stores remain closed, as well provide the company with some form of relief on interest payments on nearly $1 billion in debt, according to another person familiar with the matter.
Chuck E. Cheese’s in Toronto, Canada, June 14, 2018. Chuck E. Cheese’s is a chain of American family entertainment centers and restaurants. (iStock)
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Bondholders are working with Ducera Partners, while lenders are being advised by King & Spalding LLP, according to one of the people familiar with the matter.