California Pizza Kitchen Inc. is seeking to restructure its debt to avoid a possible bankruptcy filing, according to people familiar with the discussions, as the coronavirus pandemic decimates sales at casual-dining chains, the Wall Street Journal reported. The Los Angeles-based company has hired restructuring firm Alvarez & Marsal Holdings LLC, along with Guggenheim Partners, to facilitate deal talks with its lenders, the people said. California Pizza Kitchen’s lenders have hired FTI Consulting Inc. and Gibson, Dunn & Crutcher LLP to represent them legally. Guggenheim had been running a sales process for the chain, and five bids were submitted by earlier this year. The coronavirus crisis interrupted that process, and the company is now seeking a $30 million bridge loan as it seeks to restructure its debt over the next six months. California Pizza Kitchen, majority owned by private-equity firm Golden Gate Capital, was struggling before the coronavirus pandemic. The company was generating roughly $60 million in earnings annually after expenses as of late last year, one person familiar with its business said. It has tried to boost delivery, takeout and a new meal-kit service since closing dining rooms at its 240 restaurants as a result of the pandemic.
