Avado Brands gets extension to exclusivity periods

By Jeff Pines

Washington, June 1 - Avado Brands Inc. now has until Sept. 30 to exclusively file a reorganization plan and until Nov. 30 to solicit votes for the plan, according to a court order filed Friday with the U.S. Bankruptcy Court for the Northern District of Texas.

Without the extensions, the company's exclusive period to file a plan would have ended Thursday and its period to solicit votes would have ended Aug. 2.

In its motion, requesting the extensions, Avado said it needed more time to develop a reorganization plan based upon its new business plan, which is a good faith sign it is making progress.

The company also cited its size and complexity. Its corporate structure has more than 65 separate legal entities that own and operate 160 restaurants in 22 states, and it has liabilities of $260 million.

Avado, a Madison, Ga.-based restaurant company, filed for Chapter 11 on Feb. 4. Its Chapter 11 case number is 04-31555.

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