Sbarro Reconsiders its Order

MidOcean Partners-backed Sbarro is taking another look at its strategic options and has terminated its pre-petition plan support agreement and equity commitment agreement with Ares Management and MidOcean. The company filed for Chapter 11 bankruptcy last month to facilitate a reorganization plan, which was to reduce the company's debt by about $200 million. Ares and MidOcean had agreed to backstop a rights offering. Sbarro is a quick-service Italian restaurant franchise and already has a bidder who has expressed preliminary interest in acquiring the company.