Judge Mary F. Walrath of the U.S. Bankruptcy Court for the District of Delaware has confirmed Buffets Restaurant Holdings exit financing as well as it reorganization plan.

According to court documents, Buffets added a five-year $50 million exit financing from first lien lenders. Those lenders that were involved in the company’s $50 million DIP loan have the option to participate in the exit loan.

The exit financing will replace the company’s DIP loan, repaying it in full. It will also provide working capital. The company’s DIP loan was led by Credit Suisse Group, Cayman Islands branch, and included a $20 million letter of credit facility and a $30 million term loan.

Under Buffets’ reorganization plan, first lien lenders will receive a share in the reorganized company’s equity, which translates into a 50% recovery. Second-lien lenders will receive a share of letter of credit deposits, court documents said.

The company’ first and second lien creditors previously approved the plan on June 25.

Previously on abfjournal.com:

Buffets Inc. Discloses Details of Bankruptcy Exit Plan, Monday, May 07, 2012