Marc Lasry’s Avenue Capital Group to buy controlling stake in Quiznos

December 30th, 2011
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Avenue Capital Group, the hedge fund founded by siblings Marc Lasry and Sonia Gardner, is set to make a bid for a controlling share of restaurant chain Quiznos. According to an article in the Denver Post, the deal would transform Avenue Capital Group’s current debt holdings in Quiznos and a fresh cash investment into a 70% stake in Quiznos. The Denver-based Quiznos is currently controlled jointly by CCMP Capital Advisors, a private-equity spinout of JP Morgan, and Consumer Capital Partners, the hedge fund managed by Quiznos founder Rick Schaden.

Quiznos recently announced a technical default on its loans, so the deal with Avenue Capital may be more attractive to creditors than the drawn-out and often uncertain route that is bankruptcy court. Avenue Capital aims to reduce Quiznos’s debt by close to $300 million; the company has struggled to repay debts with sales falling 23% from 2008-2010 with an estimated 2000 store closures in the same period. Creditors will have until late January to make a decision.
For Detailed Investor Profiles on these Investors, click below:
Avenue Capital Group
Related People: Ed Gellert; Jon Ford; Malcolm Robinson; Marc Lasry; Matthew Kimble; Michael Elkins; Raul Ramirez; Richard Furst; Rob Symington; Shawn Foley; Sonia Gardner
Related Entities: Amroc Investments; Avenue Capital Group; Avenue Capital Management; Avenue Capital Real Estate; Avenue CLO Fund; Avenue International LTD; Avenue Special Situations; Avenue US Strategy
Related Article Tags: Shareholder Activists, Corporate Raiders and Proxy Battles

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