Claim Jumper Restaurants LLC, the operator of a Western-themed restaurant chain in eight states, won court approval to sell its assets to Landry’s Restaurants Inc. in a deal valued at about $76.6 million.
U.S. Bankruptcy Judge Kevin Gross said he would allow Claim Jumper to complete the sale after minor changes are added at a hearing today in Wilmington, Delaware.
“We were very pleased with the outcome of the auction,” Robert J. Moore, a lawyer for Claim Jumper, told Gross.
Landry’s, the Houston-based seafood chain, won an Oct. 28 auction that lasted more than nine hours and more than 100 rounds of bidding, court papers show. Landry’s will pay $48.3 million in cash, take on as much as $23.3 million in Claim Jumper debt and provide $5 million in cash to collateralize existing letters of credit.
The cash portion of the offer increased at the auction from an initial bid of $27 million by GRP Acquisition Corp., an affiliate of Black Canyon Capital LLC. The price was “a little more” than Landry’s Chief Executive Officer Tilman J. Fertitta expected to pay, he said in a Bloomberg News interview last week.
Landry’s bought the assets of Oceanaire Inc. out of bankruptcy in April for about $23.4 million, according to a company statement. Fertitta took that seafood chain private for $24.50 a share last month, the company said.
Claim Jumper, based in Irvine, California, listed assets of as much as $100 million and debt of as much as $500 million in Chapter 11 documents filed Sept. 10. The first Claim Jumper restaurant opened in Los Alamitos, California, in 1977. The chain comprises 45 restaurants in Arizona, California, Colorado, Illinois, Nevada, Oregon, Washington and Wisconsin, according to the company website.
The case is In re Claim Jumper Restaurants LLC, 10-12819, U.S. Bankruptcy Court, District of Delaware (Wilmington).
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