FAT Brands Inc.

Financing

Fat Brands says that bond investors knew what they were getting into

In a court filing, the bankrupt restaurant chain operator argues that lenders either knew about controversial actions by CEO Andy Wiederhorn before they invested, or such actions were disclosed.

Financing

Bankrupt Fat Brands is sued over control of the company's cash

352 Capital is arguing that the fast-food chain operator cannot use management fees and other cash to get the company through its reorganization.

The Bottom Line: The founder and majority owner of the restaurant chain operator has long been a controversial figure. That has not changed since the company filed for bankruptcy.

A court delayed a hearing about the fast-food chain operator’s role after steps were taken to improve the company’s governance. But creditors expressed concern about Wiederhorn’s actions.

The bankrupt restaurant chain operator said that funds used from the sale of Twin Peaks stock were to be used to raise funds for the company and not to enrich CEO Andy Wiederhorn.

A group of the fast-food operator’s bondholders want the company’s CEO suspended after a stock sale involving Twin Peaks. They also questioned the executive’s control over the company.

The owner of Twin Peaks and Round Table Pizza won’t fight a delisting notice over its recent Chapter 11 bankruptcy filing. And yet its stock rose 20%.

The Bottom Line: The fast-food restaurant chain collector took a huge risk in buying up restaurant chains at peak value and with higher interest rates. Then the market turned south.

The owner of Fazoli’s, Round Table Pizza and several other brands is seeking Chapter 11 debt protection. The company’s whole business securitization was “starving the business.”

352 Capital, a subsidiary of Jefferies Financial Group, is suing the fast-food restaurant chain operator for refusing to hand over shares in the casual-dining brand as collateral.

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