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NPC International Receives Court Approval for Second Amended Joint Chapter 11 Plan

·3 min read

Confirmation Follows Court Approval of Sale Transactions with Flynn Restaurant Group and Wendy’s International on January 20, 2021

Paves the Way for Completion of Chapter 11 Process

NPC International, Inc. ("NPC" or the "Company") announced today that it has achieved approval from the U.S. Bankruptcy Court for the Southern District of Texas (the "Court") on its Second Amended Joint Chapter 11 Plan (the "Plan"). The Plan is supported by the Company’s key stakeholders, including the official committee of unsecured creditors, the ad hoc group of priority and first lien lenders, the ad hoc group of second lien lenders, the Pizza Hut franchisor, the Wendy’s franchisor, the driver claimants involved in the Chapter 11 cases, as well as Flynn (as defined below), the Wendy’s Purchasers (as defined below), and a majority of voting creditors, and Chief U.S. Bankruptcy Judge David R. Jones ruled that it meets the criteria for confirmation under section 1129 of the U.S. Bankruptcy Code.

On January 20, 2021, the Court also approved the previously announced separate asset purchase agreements with Flynn Restaurant Group ("Flynn") and Wendy’s International LLC (together with its affiliates and the designated regional buyers, the "Wendy’s Purchasers"), which will result in the sale of substantially all of NPC’s assets. The sale transactions are expected to close in the second quarter of 2021, and the Plan would be consummated contemporaneously or shortly thereafter.

"With today’s confirmation, we have achieved a significant milestone for NPC and for our team," said Carl Hauch, CEO & President of NPC’s Wendy’s division. "We are grateful to Judge Jones for his thoughtful and diligent oversight and stewardship of these Chapter 11 cases, and we appreciate the dedication and support of our employees, customers and brand partners throughout the process. As our restaurants and team become part of the organizations of Flynn or other Wendy’s franchisees, we are confident they will have many new opportunities ahead to grow and thrive."

"We are very pleased to have received the Court’s approval of our Plan," said Jon Weber, CEO & President of NPC’s Pizza Hut division. "This important step represents the successful culmination of a lot of hard work by many people, including months of constructive negotiations with our brand partners and lenders. I’d particularly like to thank our NPC employees, who have demonstrated steadfast dedication throughout this process, despite the ongoing challenges presented by the global pandemic. It has been an honor to work alongside this talented team over the years."

Weil, Gotshal & Manges LLP is acting as NPC’s counsel, Greenhill & Co., LLC is acting as financial advisor, AlixPartners LLP is serving as restructuring advisor, A&G Realty is acting as real estate advisor to the Company, and The Cypress Group is acting as quick-service restaurant M&A advisor in connection with the transaction.

About NPC International

NPC International, Inc. is the largest franchisee of both Pizza Hut and Wendy’s as well as the second largest restaurant franchisee overall in the U.S., operating over 1,300 restaurants in 30 states and the district of Columbia. The Company, which is headquartered in Leawood, Kansas and has a shared services center located in Pittsburg, Kansas, generates approximately $1.5 billion in sales and has more than 30,000 full and part time employees.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210129005642/en/

Contacts

Sard Verbinnen & Co.
Steven Goldberg/Alyssa Lorenzo
NPCMedia@sardverb.com