A bankruptcy court today approved the sale of Cypress-based Real Mex Restaurants Inc. to a group of creditors.
Real Mex’s board of directors had approved the bid from RM Opco LLC earlier in the week.
RM Opco is made up of Santa Monica-based investment manager Tennenbaum Capital Partners LLC, JP Morgan Investment Management Inc. in New York and Lake Forest, Ill.-based Z Capital Partners LLC.
The firm’s bid for Real Mex includes $46 million in cash, an $80 million debt-for-equity swap, and the assumption of certain liabilities.
The deal gives RM Opco an 85% stake in Real Mex with the remainder of the company going to noteholders of loans set to mature next year.
Real Mex has 161 restaurants, mostly company owned, operating under the El Torito, El Torito Grill, Acapulco and Chevys Fresh Mex restaurant chains. The company also operates smaller brands, such as Las Brisas in Laguna Beach.
See the Business Journal’s print edition of Feb. 13 for more details.