CEC Chapter 11 Reorganization Confirmed

King & Spalding represented an Ad Hoc Group of Noteholders to CEC Entertainment, Inc. (CEC) in connection with CEC’s Chapter 11 bankruptcy and negotiation of a consensual plan of reorganization, eliminating over $700 million of debt obligations. CEC is a family entertainment and dining company and with its franchisees, owns and operates more than 680 Chuck E. Cheese and Peter Piper Pizza restaurants in 47 states and 16 foreign countries and territories. With its venues temporarily closed due to COVID-19, the company lost more than 90% of its revenue despite efforts to ramp up food delivery and takeout. The Ad Hoc Group that we represented held a bankruptcy majority of the outstanding note claims against CEC and ultimately negotiated a fully consensual chapter 11 plan with the other stakeholders that was culminated before the end of 2020 despite the “free fall” bankruptcy filing in July of 2020.