Quiznos, the Denver-based sandwich chain, is preparing to file for bankruptcy in the next few weeks, due to debt and declining sales.
1. This is not the first time that Quiznos has negotiated with creditors. Explain its out-of-court restructuring deal that occurred two years ago.
2. Assuming that the past debt load was similar to the current debt load, show the journal entries that Quiznos probably made for the past restructuring.
3. What would the Chapter 11 filing be focused on, besides debt?
Kratsas, G. (2014). Reports: Quiznos prepares to file for bankruptcy. USA Today, Feb. 27 (Retrievable online at http://www.usatoday.com/story/money/business/2014/02/27/quiznos-bankruptcy/5875077/)