SCOTTSDALE, Ariz., June 15, 2012 (GLOBE NEWSWIRE) -- Star Buffet, Inc. ("the Company") was informed yesterday that the Creditors' committee had retained legal and financial experts to explore alternatives to the Company's Reorganization Plan. The Disclosure Statement detailing the Reorganization Plan was approved by the Bankruptcy Court on May 24, 2012. The company believes that the appointment of legal and financial experts at this late date materially lessens the likelihood of a successful resolution of the bankruptcy proceeding for all stakeholders.
Safe Harbor Statement
Statements that are not historical facts contained in this release and other statements made by the Company may contain forward-looking statements within the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, that reflect, when made, the Company's current views with respect to current events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company's operations and business environment, which may cause the actual results of the Company to be materially different from any future results, express or implied, by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: (i) the ability of the Company to continue as a going concern; (ii) the Company's ability to obtain court approval of motions filed by it in the Chapter 11 Case from time to time; (iii) the ability of the Company to confirm and consummate a plan of reorganization; (iv) the ability of the Company to attract, motivate and/or retain key executives and employees; (v) risks associated with third parties opposing the reorganization, seeking the appointment of a Chapter 11 trustee or seeking to convert the Chapter 11 Case to a Chapter 7 liquidation case; (vi) the ability of the Company to maintain normal terms with vendors and service providers; (vii) the Company's ability to maintain contracts and leases that are important to its operations; (viii) the potential adverse impact of the Chapter 11 Case on the Company's liquidity or results of operations; and (ix) the ability of the Company to execute its business plans and strategy. Other risk factors are listed from time to time in the Company's United States Securities and Exchange Commission reports, including but not limited to the Annual Report on Form 10-K for the year ended January 25, 2010. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise.
Similarly, these and other factors, including the terms of any plan of reorganization ultimately confirmed, can affect the value of the Company's various pre-petition liabilities, common stock and/or other equity securities. Additionally, no assurance can be given as to what values, if any, will be ascribed in the Chapter 11 Case to each of these constituencies. A plan or plans of reorganization could result in holders of the Company's common stock or other equity interests receiving no distribution and having their equity interests terminated and could result in holders of claims relating to pre-petition liabilities receiving little or no distribution. Under certain conditions specified in the Bankruptcy Code, a plan of reorganization may be confirmed notwithstanding its rejection by an impaired class of creditors or equity holders and notwithstanding the fact that certain creditors or equity holders do not receive or retain property on account of their claims or equity interests under the plan. In light of the foregoing, the Company considers the value of the common stock and claims to be highly speculative and cautions equity holders that the stock may ultimately be determined to have no value and cautions creditors that the value of their claims is indeterminate at present. Accordingly, the Company urges that appropriate caution be exercised with respect to existing and future investments in the Company's common stock or other equity interest or any claims relating to pre-petition liabilities.
About Star Buffet
Star Buffet is a multi-concept restaurant operator. As of June 15, 2012, Star Buffet, through its subsidiaries, operates seven 4B's restaurants, seven JB's restaurants, four K-BOB'S Steakhouses, three Barnhill's Buffet restaurants, two HomeTown Buffets, one Casa Bonita Mexican theme restaurant, one Whistle Junction restaurant, one BuddyFreddys restaurant, one Western Sizzlin restaurant, one Holiday House restaurant, one Pecos Diamond Steakhouse and one Bar-H Steakhouse.