Friendly's, Backed by Sun Capital, Files Chapter 11
(Reuters) - U.S. burger and ice cream chain Friendly's filed for chapter 11 bankruptcy protection on Wednesday, as the sluggish economy and slowing consumer spending claimed another restaurant chain. As part of the filing, Friendly's will enter a sale process with an affiliate of its current owners, Sun Capital Partners, as the lead or "stalking horse" bidder to quickly restructure the company. Friendly's said it received a commitment for about $70 million in financing, which, along with the company's cash flow, will provide the working capital necessary to meet its ongoing obligations during the restructuring. "The strategic decision to pursue a financial restructuring will allow us to proactively and quickly improve our financial position and ensure we have the resources to build a better and stronger Friendly's," Chief Executive Harsha Agadi said.
