NEW YORK (CNNfn) - Planet Hollywood International Inc. and 25 affiliates filed for Chapter 11 protection Tuesday, as expected, in U.S. Bankruptcy Court in Delaware.|
In court papers, the theme-restaurant chain whose backers include some of the biggest stars in Hollywood listed assets of $392.2 million and debts of $359.1 million.
Orlando, Fla.-based Planet Hollywood, which had operated 80 entertainment theme restaurants worldwide, said Monday it would file for bankruptcy and close at least nine of its 32 U.S. restaurants.
Those slated for closure include restaurants in Chicago, Houston, Indianapolis, Miami, Phoenix, and Maui, Hawaii. Company officials didn't rule out closing "a couple of additional" eateries in the next week or two.
"Today is the first step in our plan to position Planet Hollywood for a return to long-term profitability and healthy growth," Robert Earl, the company's chairman, said. Noting that two-thirds of the company's restaurants will remain open, he added that "in the aggregate, [they] will generate positive cash flow through this restructuring process."
Earl wasn't immediately available for comment Tuesday, but told Reuters Monday he believes the restructuring plan will allow the company to emerge from bankruptcy in 60 days. The bankruptcy filing wasn't accompanied by a plan of reorganization.
A judge hasn't yet been assigned to the case, a court spokeswoman said.
Barish, Earl top shareholders list
Planet Hollywood officials first indicated the company was headed toward bankruptcy in August after reaching an agreement with its top shareholders and a subcommittee representing holders of its overdue bonds on a one-time $30 million cash infusion meant to allow the company to restructure.
The cash was furnished by the restaurant's three largest shareholders: Earl, Saudi Arabian Prince Alwaleed Bin Talal, and Ong Beng Seng, managing director of Hotel Properties Ltd., a hotel and investment holding company.
As of Feb. 28, owners of at least 5 percent of the voting securities were company co-founder Keith Barish; Earl (through Ropel LP); Kingdom Planet Hollywood Ltd., which is indirectly controlled by Prince Alwaleed Bin Talal; and Leisure Ventures PLC Ltd., which is indirectly controlled by Ong Beng Seng and the Singapore company HPL.
Ong Beng Seng disclaims beneficial ownership of the Leisure Venture shares of record, court papers say.
Among the 20 largest unsecured creditors are holders of 12 percent senior subordinated notes due April 1, 2005, including CEDE & Co., New York, with a $250 million claim. Beneficial owners of the notes include Bay Harbor Management LC, New York, $87.9 million; Varde Partners, Minneapolis, $29.5 million; Bank of Montreal, $3.3 million.
Also listed are unsecured trade claims ranging from $40,000 to $740,000.
Planet Hollywood's stock was delisted on the New York Stock Exchange in August and now trades on the OTC Bulletin Board.
-- from staff and wire reports