DENVER (AP) -- Quiznos says a majority of its creditors have agreed to a plan by the restaurant chain to restructure or pay off some $650 million in debt, but it may yet file for Chapter 11 bankruptcy protection.
The plan outlined Friday calls for one of Quiznos' major creditors, investment firm Avenue Capital, to invest $150 million of new equity capital into the chain.
The investment would be made up of equity and the conversion of debt to equity, and would make Avenue Capital majority owner of the Denver-based company.
The plan would eliminate nearly one-third of Quiznos' debt and provide it with $75 million to continue operating.
Quiznos says it will only file for bankruptcy if it fails to reach restructuring deals with all of its creditors.
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