As reported in The Wall Street Journal and The Deal Pipeline on Wednesday, Paul, Weiss client Quiznos has concluded a comprehensive restructuring deal with a group of lenders led by hedge fund Avenue Capital Group. All of the company’s second-lien debt will be converted into equity and Avenue Capital will inject $150 million of new equity capital into the quick serve franchise business. The company’s first-lien debt also was restructured as were certain other liabilities. According to Quiznos’ chief executive, Greg MacDonald, “improving our balance sheet and putting our capital structure issues behind us are major steps forward to strengthening the Quiznos brand and our customer experience.”

The Paul, Weiss team advising Quiznos included bankruptcy partners Alan W. Kornberg and Elizabeth McColm and counsel Claudia R. Tobler; corporate partners Carl L. Reisner and Monica K. Thurmond; litigation partners Stephen P. Lamb and Moses Silverman; employee benefits partner Robert C. Fleder and counsel Reuven Falik; and tax partner Brad R. Okun.