Real Mex, operator of the Mexican-themed Chevys Fresh Mex and El Torito restaurant chains, has agreed to sell most of its assets to Z Capital Group. In order to facilitate the sale, Real Mex voluntarily filed to reorganize under Chapter 11 of the U.S. Bankruptcy Code.
Real Mex's restaurants will remain open and operating as usual during the Chapter 11 process, per a release announcing the deal. In addition to purchasing “substantially all” of Real Mex’s assets, Z Capital Croup has also agreed to assume certain liabilities, the release added, subject to higher or otherwise better offers. Z Capital is a partial owner in the company along with co-owner Tennenbaum Capital Partners. Z Capital and Tennenbaum have agreed to provide $5.5 million in debtor-in-possession financing to expedite the sale process.