Fat Brands risks bankruptcy as lenders demand payment on $1.3B debt

Group 1 - The company, Fat Brands, is facing significant financial challenges, including a default on debt issued by five subsidiaries and a declaration from creditors that $1.3 billion in debt is due immediately, pushing the company closer to bankruptcy [3][8] - Fat Brands ended the most recent quarter with $2 million in cash and approximately $12 million in restricted cash, indicating liquidity issues [4] - The company is in discussions with lenders about refinancing or restructuring its debt burden, and is looking to raise between $75 million and $100 million in equity from its spinoff, Twin Peaks, to pay down debt owed to noteholders [3][5] Group 2 - Fat Brands has accrued significant debt through a series of acquisitions since 2019 and is attempting to deleverage its balance sheet through the spin-off of Twin Peaks via an IPO [6] - The company reported a 3.5% decline in same-store sales, although this was noted as an improvement over previous quarters [7] - Despite financial difficulties, Fat Brands continues to open new units across its various brands, contrasting with other companies in the industry that have faced store closures [7]