FAT Brands Lenders Say CEO ‘Looted’ Firm to Fund Trips, Jets (1)

A group of lenders to bankrupt dining chain FAT Brands Inc. has alleged that the company’s chief executive officer “looted” the business to fund vacations, jewelry and private jets.

Creditors who own most of the $1.2 billion FAT Brands raised in a whole-business securitization accused Andrew Wiederhorn in a Tuesday court filing of misappropriating lenders’ cash. The company allegedly made more than $200 million in “improper payments” before filing Chapter 11 earlier this week, lenders claimed, citing dividends and bonuses to corporate insiders as well as costs associated with defending Wiederhorn in litigation.

The lenders repeated many of the allegations ...