CEC Entertainment announced its emergence from Chapter 11 protection. This marks the successful completion of the company's financial restructuring process and implementation of the Plan of Reorganization confirmed by the U.S. Bankruptcy Court on December 15. CEC emerges with a strengthened financial position the company said, approximately $705 million of debt obligations eliminated from its balance sheet, and the support of a new Board of Directors and ownership.
"We are thrilled to have emerged from our financial restructuring process and look forward to beginning a new chapter as a stronger and healthier company well positioned to execute on our long-term goals," says David McKillips, CEC's CEO. "Under new ownership, and with the leadership of our new Board, the CEC team is excited to continue delivering memories, entertainment, and pizza for kids and families around the world for generations to come. Behind the strength of our entire team and world-class brands, we look forward to growing through key opportunities and implementing our strategic plan."
As a result of the contributions and support of key constituents, the company's balance sheet has been strengthened by the reduction of approximately $705 million of debt obligations and at emergence the company has over $100 million of liquidity to support operations and growth initiatives.
CEC has emerged with a new Board of Directors that will consist of seven members including:
- David McKillips, CEO of CEC
- Joshua Acheatel, Senior Investment Professional at Monarch Alternative Capital LP
- Howard Altman, Chief Investment Officer of Metropoulos & Co.
- Patrick J. Bartels Jr., Managing Member of Redan Advisors
- Clifford Hudson, previously Chairman of the Board and CEO of Sonic Corp.
- Lance Milken, Founder of Ripple Industries LLC, and formerly a Senior Partner at Apollo Global Management, Inc
- An additional director appointed in accordance with the limited liability company agreement of CEC Holdings.
As of December 30, the company and its franchisees operated 559 Chuck E. Cheese and 122 Peter Piper Pizza venues.
The company plans to continue opening additional locations as it is safe to do so, steadily bringing more employees back to work.
CEC Entertainment was advised in this process by Weil, Gotshal & Manges LLP as legal counsel, PJT Partners as investment banker, FTI Consulting as financial adviser, and Hilco Real Estate as real estate consultant. The Ad Hoc Group of First Lien Lenders was advised in this process by Akin Gump Strauss Hauer & Feld LLP as legal counsel and Houlihan Lokey Capital, Inc. as financial adviser.