August 6, 2018 / 5:21 AM / 14 days ago

Real Mex Restaurants files for bankruptcy, to sell assets to Z Capital

Aug 6 (Reuters) - Real Mex Restaurants agreed to sell its assets to Z Capital Group and to facilitate the sale it voluntarily filed for Chapter 11 bankruptcy protection, the U.S. restaurant chain’s holding company RM Holdco LLC said on Monday.

Real Mex, which operates Chevys Fresh Mex, El Torito, and other full-service Mexican restaurant brands, will remain open and operate as usual during the Chapter 11 process, the company said.

RM Holdco lists assets in the range of $50 million to $100 million and liabilities in the range of $100 million to $500 million, according to a filing in the U.S. Bankruptcy Court for the District of Delaware.

Z Capital agreed to buy all of Real Mex’s assets and assume certain liabilities, and along with co-owner Tennenbaum Capital Partners has agreed to provide $5.5 million in debtor-in-possession financing, the company said.

Sidley Austin LLP is serving as legal adviser, Alvarez & Marsal is its financial adviser, and Piper Jaffray & Co is the M&A adviser, Real Mex said. (Reporting by Rama Venkat Raman in Bengaluru; Editing by Gopakumar Warrier)

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