Saudi Printing and Packaging Co (SPPC) is discontinuing operations of its fully owned subsidiary, Al Madinah Packaging Co (City Pack), in the UAE. The company’s board approved the closure as part of SPPC’s strategy to review and exit from non-core assets, according to a statement issued to Tadawul. The decision is aimed at reallocating resources towards higher-growth and value-added packaging sectors within SPPC’s key target markets. SPPC noted that ending City Pack’s activities is expected to contribu ...

Core Viewpoint - FAT Brands, a restaurant franchiser with a significant debt of approximately $1.3 billion, has filed for Chapter 11 bankruptcy to restructure its debt and support the continued growth of its brands [1][6]. Company Overview - FAT Brands operates 18 restaurant brands, including Fatburger, Johnny Rockets, and Twin Peaks, with over 2,200 locations globally [1]. - The company’s subsidiary, Twin Hospitality Group, which operates the Twin Peaks chain, also filed for Chapter 11 bankruptcy [2]. Financial Situation - The company reported having only $2.1 million in cash at the time of the bankruptcy filing and had missed payments prior to mid-November of the previous year [9]. - Following the bankruptcy announcement, shares of FAT Brands dropped by 45% [7]. Market Conditions - The company cited common challenges in the restaurant industry, such as inflation and declining customer demand for casual dining, as contributing factors to its financial difficulties [5][6]. - Erin Mandzik, a communications senior director, noted that the market conditions have been difficult and largely unforeseen, impacting the company's ability to restructure its debt [6]. Operational Impact - Despite the bankruptcy filing, FAT Brands expects its signature brands to continue operating as usual during the Chapter 11 process [12]. - The company had plans to expand its Fatburger chain by adding at least 40 new locations in Florida before the bankruptcy filing [2].

You can find original article here Nrn. Subscribe to our free daily Nrn newsletters. FAT Brands faces more legal and financial turmoil as another entity has filed a lawsuit against the company over alleged unpaid contractual obligations. The company’s largest bondholder, Investor 352 Fund, is suing FAT Brands for $109 million and promised Class B Common stock tied to ownership of Twin Peaks, as it was issued by Twin Hospitality. According to the lawsuit, filed in the New York County Supreme Court, FAT B ...

Key Takeaways QMCO certified DIVA with ActiveScale object storage to support long-term media archiving.QMCO expects about $67M in Q3 revenue as backlog tops $25M, reflecting strong sales momentum.Quantum strengthened financial flexibility by converting $52M debt and cutting total debt by $140M.The media industry is experiencing a surge in content creation. As content libraries expand into the petabyte range, the challenge is no longer just about storing data but about preserving valuable media securely, sus ...

Bloomberg A group of AMC Entertainment Holdings Inc. bondholders is kicking off confidential talks with the theater chain, prompting some of its notes to tumble amid concerns a broader debt move may be afoot. Some holders of the 15% bonds are entering restricted talks with AMC, according to people familiar with the matter, who asked not to be identified discussing private information. The notes, which are due in February 2029, dropped more than 5 cents on the dollar on Friday to 98.5 cents, the most sinc ...

Core Viewpoint - FAT Brands is facing significant financial and legal challenges, including a lawsuit from franchisees alleging mismanagement of marketing funds and liquidity issues that could lead to bankruptcy [5][6][31]. Financial Situation - FAT Brands disclosed over $1.26 billion in debt and reported only $2 million in cash and $10 million in restricted cash, indicating a precarious liquidity position [5][31]. - The company is in discussions with bondholders to restructure its balance sheet, but the complexity of its debt tied to individual brands may prolong the process [4][32]. Legal Challenges - The Round Table Owners' Association filed a lawsuit against Round Table Franchise Corporation (RFTC), alleging breach of contract and misuse of advertising funds, claiming significant financial harm to franchisees [1][2]. - This lawsuit is part of a broader pattern of legal issues for FAT Brands, including previous lawsuits from franchisees and an SEC investigation into financial practices [6][10][12]. Franchisee Relations - Franchisees report delays in receiving critical soda rebates from Pepsi and Dr Pepper, which are essential for cash flow, with claims that FAT Brands is behind on payments [18][19]. - Franchisees have expressed dissatisfaction with the company's communication regarding operational issues, leading to unrest and plans to withhold royalty payments until owed rebates are received [30][27]. Company History and Acquisitions - FAT Brands has expanded rapidly through acquisitions, but this growth has come with significant debt and legal challenges, including allegations of financial fraud against its founder [6][12][13]. - The company has faced scrutiny for its management practices, with franchisees alleging that funds intended for marketing have been misused for unrelated expenses [7][8].

Core Viewpoint - FAT Brands is facing significant financial challenges, with a complicated debt structure of $1.26 billion that is not guaranteed by the parent company, allowing for potential bankruptcy of individual brands without affecting the entire company [2][5]. Debt Structure - The company's debt is distributed across five securitization trusts and involves multiple layers of investors, which is intended to isolate financial risk [2]. - The debt restructuring process has been complicated by the involvement of approximately 25 different investors or note holders who have not reached a consensus on a solution [5]. Debt Restructuring Efforts - The CEO has been in discussions with note holders for 18 months to two years regarding debt restructuring, but negotiations have not been constructive [3]. - The company is exploring various avenues to lower its debt and make it more manageable, although the process may take several rounds to resolve [3]. Financial Performance - Despite the substantial debt, FAT Brands reported $60 million in free cash flow, indicating that the company is still in a relatively stable position [5]. - The CEO believes that restructuring the debt stack is essential for the company's financial health and urges note holders to reach a conclusion soon [5]. Impact of Legal Issues - A three-year federal criminal investigation into the CEO for fraud and money laundering, which concluded in his favor, has strained the company's financial resources and complicated the debt restructuring process [4].

This story was originally published on Trucking Dive. To receive daily news and insights, subscribe to our free daily Trucking Dive newsletter. Dive Brief: STG Logistics filed for Chapter 11 bankruptcy to restructure debt and reorganize operations via a “restructuring support agreement,” the company announced in a Jan. 12 press release. The company’s voluntary petition said it had over $1 billion in both assets and liabilities.  The move eliminates roughly 91% of the company’s debt and provides $150 mil ...

Spain-based Lecta and key stakeholders have entered a lockup agreement that commits parties to supporting a recapitalisation of the company. The agreement provides the necessary support for Lecta to move forward with its debt restructuring plans. Under the recapitalisation, the company is expected to reduce its debt burden by approximately €400m ($468.4m). This would bring the company's net leverage ratio to below 3× on a pro forma basis and also includes provisions for up to €100m in new financing ded ...

Core Viewpoint - Venezuelan bonds are expected to appreciate following the capture of President Nicolás Maduro, indicating a potential shift in the political landscape and the possibility of debt restructuring [1] Group 1: Political Developments - The capture of President Nicolás Maduro sets the stage for a potential regime change in Venezuela [1] - This political shift may lead to improved conditions for Venezuelan bonds, as investors anticipate changes in governance [1] Group 2: Debt Restructuring - The prospect of debt restructuring could further enhance the value of Venezuelan bonds [1] - However, resolving Venezuelan debt is likely to be complex due to the country's existing obligations, which include defaulted bonds, loans, and legal judgments owed to various creditors [1]