Real Mex, the operator of Chevys Fresh Mex, El Torito and other full-service Mexican restaurant brands, executed an asset purchase agreement with an affiliate of Z Capital Group. To facilitate the sale, the company voluntarily filed to reorganize under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware.
Real Mex’s restaurants will remain open and operating as usual during the Chapter 11 process.
Under the asset purchase agreement, Z Capital agreed to purchase substantially all of Real Mex’s assets and assume certain liabilities, subject to higher or otherwise better offers. Z Capital is currently a partial owner in the company and, along with co-owner Tennenbaum Capital Partners, agreed to provide $5.5 million in DIP financing to ensure an efficient bankruptcy and sale process.
“Today’s filing is an important step in completing the sale process that Real Mex began late last year,” said CEO Bryan Lockwood. “The support from Z Capital and Tennenbaum will help minimize any disruptions and ensure that the process is seamless for our guests, employees, and vendors. We’re looking forward to completing this transaction as swiftly as possible and emerging from Chapter 11 in a stronger financial position, poised for future growth.”
Sidley Austin is serving as legal advisor, Alvarez & Marsal as financial advisor and Piper Jaffray as M&A advisor to Real Mex.
