SCOTTSDALE, Ariz., May 25, 2012 (GLOBE NEWSWIRE) -- Star Buffet, Inc. (Pink Sheets:STRZ) (the "Company") announces that yesterday, the United States Bankruptcy Court for the District of Arizona (the "Bankruptcy Court") approved the disclosure statement (the "Disclosure Statement") filed in connection with the Company's proposed First Amended Joint Plan of Reorganization Dated May 24, 2012 under Chapter 11 of the Bankruptcy Code (the "Plan"). Approval of the Disclosure Statement allows the Company to solicit approval of the Plan from its creditors. The approval of the Disclosure Statement represents an important step in the Company's efforts to emerge from Chapter 11.
Star Buffet, Inc. filed a voluntary petition for reorganization under Chapter 11 on September 28, 2011. Summit Family Restaurants Inc. ("Summit") filed a voluntary petition for reorganization under Chapter 11 on September 29, 2011. The cases are being jointly administered. None of the Company's other subsidiaries were included in the bankruptcy filing.
Information contained in the Plan is subject to change, whether as a result of amendments to the Plan, actions of third parties or otherwise. The confirmation hearing for the Plan is scheduled for July 12, 2012.
The press release is for informational purposes only and is not a solicitation to accept or reject the Plan. Ballots are being distributed directly to those creditors of the Company and Summit that are entitled to vote to accept or reject the Plan.
The Plan will become effective only if, among other requirements, it receives the requisite votes in favor of acceptance and is confirmed by the Bankruptcy Court. There can be no assurance that: (a) those entitled to vote on the Plan will accept it, or (b) that the Court will confirm it.
Safe Harbor Statement
Statements that are not historical facts contained in this release and other statements made by the Company may contain forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, that reflect, when made, the Company's current views with respect to current events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company's operations and business environment, which may cause the actual results of the Company to be materially different from any future results, express or implied, by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: (i) the ability of the Company to continue as a going concern; (ii) the Company's ability to obtain court approval of motions filed by it in the Chapter 11 Case from time to time; (iii) the ability of the Company to confirm and consummate a plan of reorganization; (iv) the ability of the Company to attract, motivate and/or retain key executives and employees; (v) risks associated with third parties opposing the reorganization, seeking the appointment of a Chapter 11 trustee or seeking to convert the Chapter 11 Case to a Chapter 7 liquidation case; (vi) the ability of the Company to maintain normal terms with vendors and service providers; (vii) the Company's ability to maintain contracts and leases that are important to its operations; (viii) the potential adverse impact of the Chapter 11 Case on the Company's liquidity or results of operations; and (ix) the ability of the Company to execute its business plans and strategy. Other risk factors are listed from time to time in the Company's United States Securities and Exchange Commission reports, including but not limited to the Annual Report on Form 10-K for the year ended January 25, 2010. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise.
Similarly, these and other factors, including the terms of any plan of reorganization ultimately confirmed, can affect the value of the Company's various pre-petition liabilities, common stock and/or other equity securities. Additionally, no assurance can be given as to what values, if any, will be ascribed in the Chapter 11 Case to each of these constituencies. A plan or plans of reorganization could result in holders of the Company's common stock or other equity interests receiving no distribution and having their equity interests terminated and could result in holders of claims relating to pre-petition liabilities receiving little or no distribution. Under certain conditions specified in the Bankruptcy Code, a plan of reorganization may be confirmed notwithstanding its rejection by an impaired class of creditors or equity holders and notwithstanding the fact that certain creditors or equity holders do not receive or retain property on account of their claims or equity interests under the plan. In light of the foregoing, the Company considers the value of the common stock and claims to be highly speculative and cautions equity holders that the stock may ultimately be determined to have no value and cautions creditors that the value of their claims is indeterminate at present. Accordingly, the Company urges that appropriate caution be exercised with respect to existing and future investments in the Company's common stock or other equity interest or any claims relating to pre-petition liabilities.
About Star Buffet
Star Buffet is a multi-concept restaurant operator. As of May 25, 2012, Star Buffet, through its subsidiaries, operates seven 4B's restaurants, seven JB's restaurants, four Barnhill's Buffet restaurants, four K-BOB'S Steakhouses, two HomeTown Buffets, one Casa Bonita Mexican theme restaurant, one Whistle Junction restaurant, one BuddyFreddys restaurant, one Western Sizzlin restaurant, one Holiday House restaurant, one JJ North's Grand Buffet, one Pecos Diamond Steakhouse and one Bar-H Steakhouse.
CONTACT: Robert E. Wheaton President, CEO Star Buffet, Inc. (480) 425-0397