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Piccadilly Restaurants LLC filed for chapter 11 protection on Friday after debt restructuring talks broke down with its lender, New York-based fund Atalaya Capital Management, Reuters reported today. Piccadilly was given a commitment for debtor in possession financing of up to $5 million, providing the company with ample liquidity, according to the company. Baton Rouge, La.-based Piccadilly has about 80 restaurants, over 70 food service operations and has roughly 3,500 employees.

Bankruptcy Judge Stuart M. Bernstein cleared Journal Register Co. to tap its $25 million bankruptcy loan, but criticized the struggling publisher for swaddling the private-equity firm that serves as the company's owner, lender and proposed bankruptcy purchaser with protections under the proposed financing deal, Dow Jones DBR Small Cap reported today. The company is looking to sell its assets in bankruptcy, with a bid composed of debt from an affiliate of Alden Global Capital LLC , which in 2011 bought the equity and debt Journal Register had handed lenders as part of its last bankruptcy exit.

Journal Register Co., which publishes the New Haven Register (Conn.) and was acquired last year by Alden Global Capital Ltd., filed for bankruptcy protection for the second time in less than four years, Bloomberg News reported yesterday. The company listed assets of more than $100 million in chapter 11 documents filed yesterday. Journal Register Co. said that it owes creditors about $162.3 million, mostly secured debt tied to its 2009 exit from bankruptcy. 21st CMH Acquisition Co., an affiliate of funds managed by Alden, agreed to act as the stalking-horse bidder for Journal Register's assets in a bankruptcy auction, according to court papers. Journal Register expects the sale process to take about 90 days.

Contec Holdings Ltd., a cable-box repair company owned by Bain Capital, is preparing to file for bankruptcy protection as soon as this week, the Wall Street Journal reported today. Contec is expected to file a pre-packaged bankruptcy, in which creditors bless a restructuring plan ahead of time and thereby limit the company's stay in court proceedings. Bain, a Boston-based investment firm, acquired Contec from another buyout shop in 2008. The restructuring agreement will wipe out Bain's investment, which the firm has already written down to zero, and hand Contec to lenders. Contec will eliminate more than $300 million of debt under the bankruptcy plan.

Morris Brown College officials have filed for chapter 11 bankruptcy in a final effort to prevent the 131-year-old school from being foreclosed on and sold at auction, the Atlanta Journal-Constitution reported yesterday. Morris Brown, which is more than $30 million in debt, was facing foreclosure next month after investors called $13 million worth of bonds tied to the college. The bonds were issued by the Fulton County Development Authority in 1996. As security for the bonds, Morris Brown pledged several pieces of property, including the school's administration building. An auction of assets had been scheduled for Sept. 4.

Broadview Networks Holdings Inc., a communications and information technology provider/operator, filed for a pre-packaged chapter 11 bankruptcy yesterday, Reuters reported. The company, headquartered in Rye Brook, N.Y., filed court papers listing $258.3 million in assets at the end of the first quarter and $373.4 million in liabilities. The company had been exploring merger, refinancing and restructuring options during the last 18 months in an effort to have enough capital by the time $300 million in senior secured notes matured Sept. 1, CEO Michael Robinson said in a declaration filed in court. Broadview said that the pre-packaged plan would enable the company to eliminate half its debt.

Mark Shale, one of Chicago's oldest specialty retailers, has filed for chapter 11 protection and said that liquidation is a possibility if the company fails to attract financing or a buyer, the Chicago Tribune reported today. Sales declines in women's clothing, as well as the overall economic downturn, have had a detrimental effect on the company's overall business, according to court documents submitted yesterday. The documents, signed by President and Chief Financial Officer Richard Myers, indicate that sales at the 83-year-old retailer have dropped sharply, about 60 percent, to $6.36 million in its most recent fiscal year. Mark Shale's filing marks the retailer's third trip through bankruptcy. The company last filed for chapter 11 in 2009, when it sold its out-of-state stores and closed an outlet on Elston Avenue.

Capitol Bancorp Ltd. sought bankruptcy protection in a bid to implement a debt-for-equity swap, warning that its community banks are "dangerously close" to an FDIC takeover, Dow Jones DBR Small Cap reported today. Under the company's proposed reorganization plan, holders of nearly $6.82 million outstanding in senior notes would receive stock in the reorganized company valued at $6.82 million. Holders of $151.3 million outstanding in trust preferred securities would receive new stock valued at about $50 million.

Friendship Dairies LLC, a Texas-based dairy farmer, filed for chapter 11 protection on Monday after a drought forced up its operational costs, Dow Jones DBR Small Cap reported today. The majority of Friendship Dairies ' debt is owed to McFinney Agri-Finance, an Idaho company that loaned Friendship $18.4 million. It owes $16 million on the loan, which is secured by $24 million in assets.

Montana electronics retailer Vann's Inc. filed for chapter 11 protection blaming declining sales in a poor retail climate and two unsuccessful efforts to expand into new businesses, the Wall Street Journal reported today. The company, which listed $17.6 million in assets and $14.4 million in liabilities in court documents filed on Friday, said that it has suffered losses because of its attempts to broaden the scope of its business beyond electronics. Vann's has two secured lines of credit, one with First Interstate Bank, on which it owes $4 million, and one with GE Commercial Distribution Finance Corp. with an $8.5 million maximum borrowing amount.