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DENVER – Quiznos has emerged from bankruptcy after completing a restructuring of its finances, according to the Associated Press. While the company did not provide details, officials stated that it followed a plan approved by the U.S. Bankruptcy Court in May.
The sandwich chain filed for Chapter 11 bankruptcy protection in March in order to reduce its debt by more than $400 million.
"Today marks the start of a new chapter for our company," said Quiznos CEO Stuart Mathis. "With our financial restructuring behind us, we now have a stronger foundation to execute our comprehensive plan to strengthen performance, revitalize the Quiznos brand and reinforce its promise as a fresh, high-quality and great-tasting alternative to traditional fast-food offerings."
Only seven Quiznos locations are owned and operated by the company. The rest of the nearly 2,100 Quiznos restaurants are franchises that were not part of the bankruptcy proceedings. The company provides franchisees with training, store design and marketing support.
Under the terms of the financial restructuring plan, three senior lenders traded $445 million in debt in exchange for 70 percent of Quiznos' company shares and $200 million in new debt, according to media reports.
"We sincerely appreciate the support of our franchisees, employees and vendors, who enabled us to continue providing Quiznos customers with high-quality menu offerings and superior service throughout this process," Mathis said.
Company officials also stated that in the wake of the bankruptcy, they will work with franchisees to help position them for future growth and success.