FAT Brands Inc.

Financing

Fat Brands lenders want Andy Wiederhorn suspended

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.

Financing

Bankrupt Fat Brands' stock gets delisted and takes off anyway

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.

The CEO of the owner of Round Table Pizza and Fazoli’s called the process for renegotiating its debt “painful and slow” and that he is trying to resolve it “out of court.”

The restaurant franchise operator, which is in danger of bankruptcy, faces a delisting of its stock over its low price and market valuation.

CFO Kenneth Kuick, along with Thayer and Taylor Wiederhorn, have each received retention bonuses to remain with the company in case it files for bankruptcy. They also received $400,000 raises.

The Bottom Line: Lawsuits, regulatory filings and our own reports paint a picture of a deepening financial problem at the owner of Fazoli’s, Fatburger and several other restaurant chains.

The owner of Fatburger and Fazoli’s has been sued in a Delaware court over allegations that the company used short-term borrowing and merchant cash advances to hide a liquidity crisis.

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