Metromedia Steakhouses

Representation of Metromedia Steakhouses Company, a Texas-based operator of a chain of “all you can eat” buffet restaurants under the Ponderosa and Bonanza brands, in its chapter 11 case in the District of Delaware. Metromedia filed for chapter 11 due to declining sales. Under the plan of reorganization, Metromedia’s parent provided three loans to support the reorganized debtor. Unsecured creditors were provided two options for recovery under the plan: payment from a litigation trust or equity in reorganized Metromedia.