Emerges from Chapter 11 Process Having Reduced Debt Obligations by Approximately $705 Million
Chuck E. Cheese and Peter Piper Pizza to Continue Serving Families as the World's Greatest Family Restaurant and Entertainment Brands
IRVING, Texas, Dec. 30, 2020 /PRNewswire/ -- CEC Entertainment ("CEC" or the "Company") today announced its emergence from Chapter 11 protection. This milestone marks the successful completion of the Company's financial restructuring process and implementation of the Plan of Reorganization confirmed by the U.S. Bankruptcy Court on December 15, 2020. CEC emerges with a significantly strengthened financial position, approximately $705 million of debt obligations eliminated from its balance sheet, and the full support of its new Board of Directors and ownership.
"We are thrilled to have emerged from our financial restructuring process and look forward to beginning a new chapter as a stronger and healthier company well positioned to execute on our long-term goals," said David McKillips, CEC's Chief Executive Officer. "Under new ownership, and with the leadership of our new Board, the CEC team is excited to continue delivering memories, entertainment, and pizza for kids and families around the world for generations to come. Behind the strength of our entire team and world-class brands, we look forward to growing through key opportunities and implementing our strategic plan."
As a result of the contributions and support of key constituents, the Company's balance sheet has been strengthened by the reduction of approximately $705 million of debt obligations and at emergence the Company has over $100 million of liquidity to support operations and growth initiatives.
CEC has emerged with a new Board of Directors that will consist of seven members including:
David McKillips, CEO of CEC;
Joshua Acheatel, Senior Investment Professional at Monarch Alternative Capital LP;
Howard Altman, Chief Investment Officer of Metropoulos & Co.;
Patrick J. Bartels Jr., Managing Member of Redan Advisors;
Clifford Hudson, previously Chairman of the Board and CEO of Sonic Corp.;
Lance Milken, Founder of Ripple Industries LLC, and formerly a Senior Partner at Apollo Global Management, Inc.; and
An additional director appointed in accordance with the limited liability company agreement of CEC Holdings.
As of December 30, the Company and its franchisees operate 559 Chuck E. Cheese and 122 Peter Piper Pizza venues. A list of open locations and services provided can be found on https://www.chuckecheese.com/reopening-directory and https://www.peterpiperpizza.com/locations. The Company plans to continue opening additional locations as it is safe to do so, steadily bringing more employees back to work and providing families with wholesome entertainment over great food.
Filings and additional information on the transaction consummated in connection with the Company's emergence from bankruptcy can be found at https://cases.primeclerk.com/cecentertainment/.
CEC Entertainment was advised in this process by Weil, Gotshal & Manges LLP as legal counsel, PJT Partners as investment banker, FTI Consulting as financial advisor, and Hilco Real Estate as real estate consultant. The Ad Hoc Group of First Lien Lenders was advised in this process by Akin Gump Strauss Hauer & Feld LLP as legal counsel and Houlihan Lokey Capital, Inc. as financial advisor.
This press release includes statements that may constitute "forward-looking statements" that are not historical facts, including statements about the beliefs, expectations, estimates, future plans, and strategies of CEC including, but not limited to, statements about the Chapter 11 cases. These statements are based on current expectations and assumptions, which management believes are reasonable, and on information currently available to management, but are necessarily subject to various risks and uncertainties. In addition to the risk that these assumptions prove to be inaccurate, factors that could cause actual results to differ materially from those contemplated by the forward-looking statements include factors disclosed in CEC's annual report on Form 10-K, as amended, for the year ended December 29, 2019, and subsequent reports filed with the Securities and Exchange Commission (the "SEC"), which are available on CEC's website at https://cecentertainment.gcs-web.com/investor-overview and on the SEC website at www.sec.gov. Additional factors include, but are not limited to, those associated with the Chapter 11 cases commenced on June 24, 2020 and those associated with the COVID-19 global pandemic. CEC undertakes no obligation to publicly update or revise any forward-looking statements, whether due to new information, future events or otherwise, except to the extent required by law.
About the Company
CEC Entertainment, LLC is a nationally recognized leader in family dining and entertainment with both its Chuck E. Cheese and Peter Piper Pizza restaurants. As the place where a million happy birthdays are celebrated every year, Chuck E. Cheese's goal is to create positive, lifelong memories for families through fun, food, and play and is the place Where A Kid Can Be A Kid®. Committed to providing a fun, safe environment, Chuck E. Cheese helps protect families through industry-leading programs such as Kid Check®. As a strong advocate for its local communities, Chuck E. Cheese has donated more than $16 million to schools through its fundraising programs. Peter Piper Pizza features dining, entertainment and carryout with a neighborhood pizzeria feel and "pizza made fresh, families made happy" culture. Peter Piper Pizza takes pride in delivering quality food and fun that reconnects family and friends. With a bold design and contemporary layout, an open kitchen revealing much of their handcrafted food preparation, the latest technology and games, and beer and wine for adults, Peter Piper Pizza restaurants appeal to parents and kids alike. The Company and its franchisees operate a system of 559 Chuck E. Cheese and 122 Peter Piper Pizza venues, with locations in 47 states and 15 foreign countries and territories. For more information, visit chuckecheese.com and peterpiperpizza.com.
For CEC Entertainment, LLC
Investors / Media
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SOURCE CEC Entertainment