US chain Real Mex Restaurants has entered an asset purchase agreement with an affiliate of Z Capital Group.
Announced by the chain’s holding company RM Holdco, Z Capital Group will buy all of Real Mex’s assets and assume certain liabilities.
It will offer $5.5m in debtor-in-possession financing to ensure an efficient bankruptcy and sale process along with co-owner Tennenbaum Capital Partners.
In order to facilitate the sale, the restaurant company has voluntarily filed for bankruptcy under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware to support the sale process.
RM Holdco CEO Bryan Lockwood said: “Today’s filing is an important step in completing the sale process that Real Mex began late last year.
“The support from Z Capital and Tennenbaum will help minimise 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.”
RM Holdco will continue to operate its restaurants during the bankruptcy process.
Real Mex Restaurants operates Chevys Fresh Mex, El Torito and other full-service Mexican brands.