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Real Mex To Sell Its Assets To Z Capital Group; Company To File Chapter 11 To Facilitate Sale; Restaurants Open And Operating As Usual

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Real Mex To Sell Its Assets To Z Capital Group; Company To File Chapter 11 To Facilitate Sale; Restaurants Open And Operating As Usual

PR Newswire

CYPRESS, Calif, Aug. 6, 2018 /PRNewswire/ -- RM Holdco LLC and its subsidiaries ("Real Mex"), the operator of Chevys Fresh Mex, El Torito, and other full-service Mexican restaurant brands, today announced that it has executed an Asset Purchase Agreement with an affiliate of Z Capital Group, LLC.  In order to facilitate the sale, the Company has voluntarily filed to reorganize under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.

Real Mex's restaurants will remain open and operating as usual during the Ch. 11 process and customers can expect to continue to enjoy the great food, festive environment, and genuine hospitality for which the Company is known.

Under the asset purchase agreement, Z Capital Croup has agreed to purchase substantially all of Real Mex's assets and assume certain liabilities, subject to higher or otherwise better offers.  Z Capital Croup is currently a partial owner in the Company and, along with co-owner Tennenbaum Capital Partners, has agreed to provide $5.5 million in Debtor-in-Possession financing to ensure an efficient bankruptcy and sale process.

"Today's filing is an important step in completing the sale process that Real Mex began late last year," said CEO Bryan Lockwood.  "The support from Z Capital and Tennenbaum will help minimize any disruptions and ensure that the process is seamless for our guests, employees, and vendors.  We're looking forward to completing this transaction as swiftly as possible and emerging from Ch. 11 in a stronger financial position, poised for future growth."

Real Mex has established a Restructuring Information Hotline for interested parties at 888-251-3046 (toll-free domestic) or 310-751-2615 (direct dial international). Additional information can be found on Real Mex's website at www.Realmexrestaurants.com/sale. Court filings and information about the claims process can be found at a separate website maintained by the Company's claims agent, KCC LLC, at www.kccllc.net/RealMex.

Sidley Austin LLP is serving as legal advisor, Alvarez & Marsal is serving as financial advisor, and Piper Jaffray & Co is serving as M&A advisor to Real Mex.

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SOURCE RM Holdco LLC

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