Star Buffet, Inc. (Pink Sheets:STRZQ) announced today that on March 26, 2012, the Company and its wholly-owned Summit Family Restaurants Inc. subsidiary filed a with the Bankruptcy Court (“Bankruptcy Court”) a proposed Joint Plan of Reorganization (“the Plan”) and related Disclosure Statement in accordance with the Bankruptcy Code. The Plan represents a important step in the Company’s efforts to emerge from Chapter 11.
Star Buffet, Inc. filed a voluntary petition for reorganization under Chapter 11 protection on September 28, 2011. None of the Company’s subsidiaries were included in the bankruptcy filing except for Summit Family Restaurants, Inc.
Information contained in the Plan and Disclosure Statement is subject to change, whether as a result of amendments to the Plan, actions of third parties or otherwise.
Bankruptcy law does not permit solicitation of acceptances of a plan of reorganization until the Bankruptcy Court approves the related Disclosure Statement. Accordingly, this press release is not intended to be, nor should it be construed as a solicitation for a vote on the Plan.
The Plan will become effective only if, among other requirements, it receives the requisite votes in favor of acceptance and is confirmed by the Bankruptcy Court. There can be no assurance that: (a) the Court will approve the Disclosure Statement, (b) those entitled to vote on the Plan will accept it, or (c) that the Court will confirm it.
Star Buffet is a multi-concept restaurant operator. As of April 4, 2012, Star Buffet, through its subsidiaries, operates seven 4B’s restaurants, seven JB’s restaurants, four Barnhill’s Buffet restaurants, four K-BOB’S Steakhouses, two HomeTown Buffets, one Casa Bonita Mexican theme restaurant, one Whistle Junction restaurant, one BuddyFreddys restaurant, one Western Sizzlin restaurant, one Holiday House restaurant, one JJ North’s Grand Buffet, one Pecos Diamond Steakhouse and one Bar-H Steakhouse.