Consensual Chapter 11 Plan of Reorganization Filed in the bankruptcy cases of Spectrum Restaurant Group and its affiliates

Irell & Manella LLP, Counsel to the Official Committee Of Unsecured Creditors in the Grandys, Prego, Spoons, Tutto Mare, Guayamas, Crabby Bobs and National Sports Grill Bankruptcy Cases, Announces that a Consensual Plan of Reorganization has Been Confirmed

Newport Beach, CA (PRWEB) July 10, 2004 -- Irell & Manella LLP, a full service law firm with offices in Los Angeles and Newport Beach, today announced the filing of a consensual chapter 11 plan of reorganization in the bankruptcy cases of Spectrum Restaurant Group and its affiliates (the Debtors"). The Debtors own, operate and franchise numerous restaurants throughout the country, with such well-known brands as Prego Ristorante, Tutto Mare, Chianti, MacArthur Park, Harrys Bar, Guayamas, Grandys, Spoons, National Sports Grill and Crabby Bobs.

The Plan provides for free cash generated by the Debtors to be used to retire the Debtors unsecured debt and an equity infusion by the holders of the Debtors stock. The Plan also incorporates and effectuates various agreements among the Debtors, the Official Committee of Unsecured Creditors (the Committee") and the Debtors secured creditors relative to the treatment of creditors claims. The confirmed plan provides for a recovery for unsecured creditors that is vastly superior to the plan of reorganization originally proposed by the Debtors.

Jeffrey M. Reisner and Tavi C. Flanagan, attorneys in Irell & Manella LLPs Newport Beach-based bankruptcy practice, served as legal counsel to the Committee in the Debtors Chapter 11 cases. The Committee also was assisted by financial advisors Larry Lattig and Lisa Grassi of KPMG. The Unsecured Creditors Committee, chaired by Numair Pirzada and Allen Gilbert, played a critical role in achieving this favorable outcome.

Background Notes
•One of the leading law firms in the United States, Irell & Manella LLP was founded in Los Angeles in 1941. Dedicated to excellence, the firm is a full-service commercial law partnership with a professional legal staff now comprising more than 240 attorneys, 89 of whom are partners.
•Irell and Manella was voted the Best Law Firm in California to Work For" by law.com in 2003.
•Irell & Manella LLPs insolvency department represents debtors, creditors, creditors committees, and bankruptcy trustees in legal cases throughout the United States.
•For more information on Irell & Manellas full range of professional legal services, visit the firm online at www.irell.com.