UPDATE 1-Sbarro files amended bankruptcy plan

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n" readability="55">Oct 7 (Reuters) - Bankrupt pizza chain Sbarro Inc filed an amended restructuring plan in which its lenders agreed to provide about $35 million of new capital, reduce its total debt and emerge from bankruptcy protection before the end of the year.
Under the plan, Sbarro's senior lenders would fund a $110 million exit loan comprising $35 million in outstanding debt under Sbarro's current bankruptcy loan and $75 million of debt from its pre-bankruptcy credit facility.
Another $100 million owed to the lenders would be converted to equity in the reorganized company. The lenders are led by collateral agent Cantor Fitzgerald Securities.
Sbarro said it expects to generate "positive cash flow before year-end".
The company also said the plan has the support of all its key stakeholders, including the unsecured creditors committee.
Melville, New York-based Sbarro, which filed bankruptcy in April, is seeking to get rid of the bulk of its $395 million debt load. The restaurant, which sells pizza, pastas and other Italian foods, has said in court filings that it has had discussions with an unnamed foreign investor it hopes will make a play for its assets.
The Sbarro family started their company as a salumeria, or Italian grocery store, in Brooklyn in 1956 soon after immigrating to the United States from Naples, Italy. Its ubiquitous green, white and red banner is a familiar sight in malls, rest stops and airports.
The case is In re: Sbarro Inc, U.S. Bankruptcy Court, Southern District of New York, No. 11-11527.
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Bankruptcy judge denies Dodgers request for Selig details

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n" readability="60">Oct 7 (Reuters) - U.S. Bankruptcy Judge Kevin Gross denied a request by the Los Angeles Dodgers to expand the team's access to data regarding Major League Baseball Commissioner Bud Selig's handling of other teams.

"The court's focus is and shall remain on LAD and Mr. McCourt on the one hand and the commissioner on the other," Gross said, referring to the Dodgers, their owner Frank McCourt and commissioner Selig.

"The discovery LAD seeks would improperly shift the spotlight to the 29 other teams," he said in a filing released on Friday.

The MLB declined comment, while the Dodgers took the ruling like good sports.

"We appreciate Judge Gross' careful consideration of our arguments. We look forward to the opportunity to demonstrate that Commissioner Selig has not acted in good faith with respect to the Dodgers, and that the Dodgers have fully complied with the Baseball Agreements and have not engaged in any wrongdoing," the Dodgers said in a statement,

An evidentiary hearing in the contentious Dodgers bankruptcy case is set to begin on Oct. 31 as the two sides continue to spar over control of the team and the Dodgers' plan to auction its TV rights.

The team, which filed for bankruptcy in June, wants to move forward with an auction of its broadcast rights. The auction is expected to help refinance the team and allow McCourt hold onto it after bankruptcy.

MLB has disputed the team's need for bankruptcy and have questioned McCourt's personal interests and spending. [ID:nS1E78Q0MD].

Judge Gross of the U.S. Bankruptcy Court for the District of Delaware last week scheduled an evidentiary hearing for Oct 31, Nov 1, 2 and 4.

The case is In re: Los Angeles Dodgers LLC, U.S. Bankruptcy Court, District of Delaware, No. 11-12010.

(Editing by Bernard Orr)

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