FAT Brands Strikes Deal With Creditors Over Bankruptcy Sales

Bankrupt restaurant chain owner FAT Brands Inc. says it’s struck a deal with its largest secured lenders and unsecured creditors to pave the way toward a sale of its assets and wind down.

The proposed settlement would have lenders provide an additional $8 million in liquidity to fund FAT Brands’ wind-down process and professionals fees, resolving or defering major litigation and sale objections, according to a May 15 motion in the US Bankruptcy Court for the Southern District of Texas.

The deal would also keep most current jobs at the restaurant chains, according to court records.

“The Global Settlement represents ...