Bankruptcy Updates

Sbarro
The US Bankruptcy Court on September 8, 2011 approved Sbarro's motion to implement a key employee incentive plan (KEIP), under which total payments can range from $585,000 to $975,000 per measurement period - for a total aggregate cost of $1.17 million to $1.95 million. The Court on September 9, 2011 also approved Sbarro's motion for an order approving and authorizing the Debtors to perform under the exit financing commitment letter with its first lien lenders, approving procedures for consideration of alternative restructuring proposals, scheduling proposal deadlines and an auction, and approving the form and manner of notice thereof. The $18.6 million first-out, delayed-draw term loan facility will be used for general corporate purposes, including to cash collateralize existing or replacement letters of credit.

Nebraska Book Company
The US Bankruptcy Court on September 7, 2011 approved Nebraska Book Company's motion to approve the support agreement between the Debtors, the 8.625% Noteholders, the AcqCo Noteholders, and Weston Presidio. Under the agreement, in exchange for Weston Presidio's support of the Plan, the Debtors have agreed to provide an enhanced package of new warrants.