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Friendly's Files for Chapter 11 Bankruptcy


Hunter

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Any thoughts on whether Sardar gets involved here? 

 

"Under the auction rules Friendly's is proposing, rival bidders must offer at least $122.6 million in cash in order to challenge Sun Capital at auction. The restaurant chain is seeking a Nov. 24 bid deadline ahead of a Dec. 1 auction, although this timeline is subject to court approval."

 

He just completed the SNS dividend deal which upstreamed significant capital to the holding company.  He has dry powder...

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The following is a press release from Standard & Poor's:

 

    -- U.S. hamburger restaurant operator Steak n Shake issued a $130 million

credit facility to fund an approximately $83 million dividend to its parent

Biglari Holdings and to refinance existing debt.

    -- After receiving final documents and reviewing the terms, we are

assigning our 'B' corporate credit rating to the company.

    -- We are also assigning a 'BB-' issue-level rating with a '1' recovery

rating to the company's credit facility.

    -- The stable outlook reflects our expectations that stable operating

performance and required debt reduction will enhance Steak n Shake's credit

profile over the near term.

 

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