(Bloomberg) -- Restaurant chain owner FAT Brands Inc. and its creditors are working with advisers to discuss a potential restructuring of its roughly $1.2 billion of whole business securitization debt, according to people with knowledge of the discussions.
FAT Brands is getting advice from GLC Advisors & Co. while the creditors huddle with investment bank Houlihan Lokey Inc., said the people, who asked not to be named discussing private developments.
The group is negotiating a reworking of the debt, which FAT Brands has struggled to service despite relatively steady performance at its chains, according to one of the people, who asked not to be named discussing private discussions.
In a Wednesday filing, the company laid out plans to sell more shares in its Twin Peaks franchise, which it spun off earlier this year.
Representatives for FAT Brands, GLC Advisors and Houlihan Lokey declined to comment. The Wall Street Journal earlier Tuesday reported some details on the talks.
FAT Brands owns restaurant chains including Fatburger, Johnny Rockets and Twin Peaks. Hooters — a Twin Peaks competitor — filed for bankruptcy earlier this year, overwhelmed by its own whole business securitization debt, and is nearing an exit from Chapter 11.
Whole business securitization is a product that uses Wall Street financial engineering to lower borrowing costs for franchise-heavy businesses like restaurant chains.
FAT Brands has more than 2,300 eateries around the world, according to its website. The company acquired Italian restaurant chain Fazoli's in 2021 for $130 million and sports restaurant company Twin Peaks for $300 million the same year.
--With assistance from Scott Carpenter.
(Updates to add share sale plans in fourth paragraph.)
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