CEC Entertainment, the owner/operator of Chuck E. Cheese and Peter Piper Pizza, entered into a plan support agreement with consenting creditors holding greater than 66.67% in principal amount of outstanding obligations under the company’s prepetition first lien credit agreement.

CEC also received a commitment for $200 million in debtor-in-possession financing from certain of its first lien lenders to support ongoing business operations and reorganization expenses as it explores a value-maximizing transaction and seeks to emerge from Chapter 11.

CEC and the consenting creditors that are parties to the PSA agreed to the terms of a comprehensive financial restructuring, including a Chapter 11 plan premised on (i) a sale of the company’s reorganized equity or substantially all of its assets, (ii) a credit bid for a sale of substantially all of the company’s assets by the company’s first lien lenders, or (iii) a debt-for-equity exchange. Under the terms of the PSA, CEC will continue its ongoing solicitation of interest from third parties in a potential sale transaction involving the company.

“We are pleased to have reached agreement with a substantial majority of our first lien lenders on a comprehensive balance sheet restructuring that will support our reopening and longer-term strategic plans,” David McKillips, CEO of CEC, said. “This agreement and financing demonstrate our creditors’ confidence in our go-forward business plan and will enable CEC to complete this financial restructuring process in a timely manner.”

As of Sept. 4, 316 company-operated Chuck E. Cheese and Peter Piper Pizza restaurant and arcade venues had reopened in accordance with all CDC, federal, state and local guidelines.

FTI Consulting is serving as financial advisor; PJT Partners is serving as investment banker; Weil, Gotshal & Manges is serving as legal counsel and Hilco Real Estate is serving as real estate consultant to CEC in connection with the company’s Chapter 11 cases.