Scottsdale-based Star Buffet Inc., the parent company of the Casa Bonita restaurant, has filed for Chapter 11 bankruptcy protection.

The company said it would continue its restaurant operations, which includes Casa Bonita in Denver; seven 4B’s restaurants; seven JB’s restaurants; four Barnhill Buffet restaurants, three K-BOB’s Steakhouses; two HomeTown Buffets; one Whistle Junction restaurant and six other restaurants.

The decison to file Chapter 11 was reached after the company was unable to agree on terms for the payment of a $723,489 judgment against the company, Star Buffet said in a statement. The company said it plans to appeal the judgement.

The company said that although it is profitable and has significant equity in its real estate portfolio, it has been unable to refinance current mortgage obligations or a “Wells Fargo secured credit facility” due next January.

Star Buffet said its consolidated balance sheet as of August 15 showed assets of $22.4 million and liabilities of $21.4 million.

At the time of filing, the company said it was current in its payment obligations on its $5.6 million Wells Fargo secured credit facility and $5.4 million in mortgage loans.

“The company believes that cash flow from operations will provide it and its subsidiaries with sufficient liquidity to meet their post-petition obligations and maintain normal operations. The company plans to aggressively pursue its planned exit financing strategy,” said the company statement.

Howard Pankratz: 303-954-1939 or hpankratz@denverpost.com.