Sizzler International files
LOS ANGELES, CA--March 24, 1997--Sizzler
International Inc. (NYSE:SZ) Monday announced that it has
filed its plan of reorganization under Chapter 11, and that it
plans to file the disclosure statement essential to the plan's
consideration by the court and by parties-in-interest within the
next 10 days.
In late January and early February of this year, Sizzler filed
its reorganization plan and plan disclosure statement for its
domestic restaurant subsidiary, Sizzler Restaurants International
Inc. (SRI), with the federal court.
The Sizzler International (SII) plan filed Monday and the
previously filed SRI plan were negotiated with official
committees representing the company's creditors, franchisees and
After the disclosure statement relating to the SII plan is
filed, there will be a court hearing, scheduled for April 21, at
which time the court will consider whether the disclosure
statements for both plans contain adequate information for
interested parties to make an informed decision on the plans.
Once both disclosure statements receive court approval, they,
together with the plans, will be distributed to
parties-in-interest so that they can vote on the plans.
Sizzler International and four of its U.S. subsidiaries made
separate Chapter 11 filings on June 2, 1996. The company has
reported that three of the four subsidiaries are small and not
material going forward. The remaining two plans are:
-- The SRI plan, covering the domestic restaurant subsidiary,
proposes full payment of creditors' claims, which the company
estimates to be approximately $25 million. The plan calls for
these debts to be secured by and paid in full from domestic
operations. The SRI plan includes restructuring lease obligations
relating to approximately 170 nonoperating restaurant sites.
-- The parent company, SII, plan filed Monday calls for full
payment of creditors' claims, estimated by the company to be in
the $70 million range, to be secured by and paid in full from
international operations. The plan does not include any
provisions to dilute shareholders' equity nor any liquidation of
the company's profitable operations.
The company said that it should be noted that none of the
subsidiary companies which own or operate its international
operations were included in the Chapter 11 filings made last
It added that for the reorganization plans to become
effective, they must be approved by the court, after a vote by
the creditors and other constituencies which may be deemed
necessary by the court.
The restructuring which has been completed to date during the
Chapter 11 proceeding leaves Sizzler with approximately 110
company- owned and 300 franchised Sizzler restaurants around the
world. The company also operates 94 KFC restaurants in
For more information on Sizzler International via facsimile at
no cost, simply call 800/PRO-INFO and dial client code
CONTACT: Sizzler International Inc. Christopher Thomas,
310/827-2300 or Financial Relations Board Stacy Roughan,
310/442-0599 (general info.) Moira Conlon, 310/442-0599
(investor/analyst) Steven Seiler, 310/442-0599 (media)