Davis Polk is advising Cantor Fitzgerald Securities (“CFS”) as the agent for Sbarro’s prepetition lenders, post-petition debtor-in-possession lenders and exit lenders (the “Senior Lenders”) in connection with Sbarro’s restructuring pursuant to a chapter 11 plan of reorganization (the “Plan”) in the U.S. Bankruptcy Court for the Southern District of New York. On November 17, Judge Shelley C. Chapman confirmed the Plan, and the transactions contemplated thereby are expected to be consummated on November 28, 2011.

The Plan reduces Sbarro’s debt by approximately 70% and results in the Senior Lenders receiving substantially all of the equity in restructured Sbarro. The Plan is financed, in part, by a $35 million new money exit facility agented by CFS.

Based in Melville, New York, Sbarro is the world’s leading Italian quick service restaurant concept and the largest shopping mall-focused restaurant concept in the world. Sbarro has more than 1,000 restaurants in more than 40 countries. Sbarro restaurants feature a menu of popular Italian food, including pizza, a selection of pasta dishes and other hot and cold Italian entrees, salads, sandwiches, drinks and desserts.

The Davis Polk restructuring team includes partner Timothy Graulich and associates Steven C. Krause, Michelle M. McGreal, Eric L. Ruiz and Nicholas P. Stabile. Partner Jinsoo H. Kim and associates Kenneth J. Steinberg, Angela W. Cho and Julie Kourie (admitted only in South Africa) are providing credit advice. Partner John K. Knight, together with associates Patrick Delaney and Boyoon Choi, are providing advice on corporate structure and governance. Partner Barbara Nims and associate Ron M. Aizen are advising on compensation and employee benefits issues. Partners Samuel Dimon and Neil Barr and associates Kay Ng, Rhiannon Nakano and Anthony L. Oliva are providing tax advice. Marguerite M. Melvin, Elliot C. Law, Courtney J. Mitchell and Kelsey D. Stevens are the legal assistants for this restructuring. All members of the Davis Polk team are based in the New York office.