Tobacco Superstores completes expedited out-of-court restructuring of secured debt
Clients Tobacco Superstores, Inc.
Jones Day advised Tobacco Superstores, Inc., a privately held chain of 60 convenience stores in the Southeast specializing in tobacco products, in an expedited restructuring of its bank debt. The restructuring was necessitated by the discovery of material inaccuracies in financial information provided to the lender, and a successful restructuring of the debt on an expedited basis was required to stabilize the company and preserve a proposed merger transaction for an affiliated wholesale supplier and distribution company. Within a five week period, Jones Day successfully investigated the financial discrepancies, arranged for interim crisis management, negotiated a restructured loan with the lender, and negotiated a new supply agreement with the affiliated wholesale supplier to enable the merger agreement to be signed. The restructured loan closed on April 13, 2011 and the merger closed on May 2, 2011.