DJ Dine-in Theater Company IPIC Entertainment Files for Chapter 11 >IPIC
By Michael Dabaie
IPIC Entertainment (IPIC) said it initiated chapter 11 proceedings and is in negotiations for a comprehensive financial restructuring.
Shares were down 49% premarket to 85 cents.
The restaurant-and-theater brand filed in the District of Delaware, where it will seek approval of either a sale or a reorganization plan and emerge with a new capital structure.
The company said the restructuring will allow it to further improve and enhance its theaters and continue with its expansion plans.
IPIC said it current management will remain in place to work with restructuring advisors and business will continue uninterrupted. The company's operations will be supported by debtor-in-possession financing by the Retirement System of Alabama. IPIC said it anticipates the restructuring process will finish in 90 to 120 days.
IPIC said its business plan called for building 25 locations in 4 to 5 years. Delays in development cycle combined with the high cost of capital depleted IPIC's available resources before it was able to become self-funded, the company said.
Write to Michael Dabaie at michael.dabaie@wsj.com
(END) Dow Jones Newswires
August 05, 2019 07:45 ET (11:45 GMT)
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