Ponderosa and Bonzana owner files for Chapter 11
October 22, 2008
by Eric Schroeder
PLANO, TEXAS — Metromedia Steakhouses Company, L.P., which operates a chain of restaurants under the Ponderosa Steakhouse and Bonanza Steakhouse brands, has filed for Chapter 11 bankruptcy protection. The company said it plans to reorganize around its franchise operations and a profitable core of company-owned restaurants.
In connection with the filing, Metromedia said it has received a commitment of secured debtor-in-possession (DIP) financing from an affiliate, Metromedia Co., the company’s existing secured creditor. Metromedia said it intends to use the financing and cash from operations to fund operating expenses.
Metromedia said it has assets in the range of $1 million to $10 million and liabilities of $100 million to $500 million.
Metromedia’s bankruptcy filing follows that of S&A Restaurant Corp., which operates the Bennigan’s and Steak & Ale chains. S&A Restaurant filed for bankruptcy in late July.