WICHITA, Kan., Dec. 10, 2003 (PRIMEZONE) -- Lone Star Steakhouse & Saloon, Inc. ("Lone Star" or the "Company") announced today that it is proposing a plan of reorganization to purchase TX.C.C., Inc., and affiliated entities TXCC-Preston and TXLC-Albuquerque (collectively "TXCC") out of bankruptcy. The plan will be funded by Lone Star and provides that the creditors of TXCC will receive cash or Lone Star common stock, at the option of the creditor. TXCC presently owns and operates twenty (20) Texas Land and Cattle Steak House(r) restaurants located primarily in Texas.
The plan is subject to the approval of the United States Bankruptcy Court for the Northern District of Texas. The Court is currently considering a plan of reorganization proposed by the current management of TXCC. The Company believes that its plan is superior to the management plan because creditors will receive cash and stock while under the management plan a significant portion of the consideration consists of promissory notes. Other terms of the Company's offer have been disclosed in filings made with the bankruptcy court. There can be no assurance that the Company's Plan of Reorganization for TXCC will be accepted in its current form or at all.
The Lone Star Plan of Reorganization is subject to a 72 hour due diligence period, in order to analyze current financial data and other data that has not been filed with the public information, but was and is available to the proponents of the existing Plan that is before the Court and TXCC's Creditors.
Lone Star owns and operates 249 domestic and 19 international Lone Star Steakhouse & Saloon restaurants; 15 Sullivan's Steakhouse restaurants; five Del Frisco's Double Eagle Steak House restaurants and one Frankie's Italian Grille restaurant. Licensees operate three domestic and one international Lone Star restaurants, and one domestic Del Frisco's Double Eagle Steak House restaurant. More information can be found at www.lonestarsteakhouse.com.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although the Company believes the assumptions underlying the forward-looking statements contained herein, are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the press release will prove to be accurate.