Chuck E. Cheese, the restaurant chain and popular children’s party venue, is in talks with its lenders to raise money to avoid filing for bankruptcy, the Wall Street Journal reported. At the same time the Irving, Texas-based food-and-games chain has also approached lenders in recent weeks to gauge their interest in providing a $200 million loan to finance a stay in bankruptcy. The discussions are taking place as a decision looms over whether to make a $1.9 million quarterly payment on loans due at the end of June. Some lenders and bondholders are trying to put together a deal to provide the company more capital to help it stay out of bankruptcy as locations have only begun to reopen, as well provide the company with some form of relief on interest payments on nearly $1 billion in debt.
