Friendly’s Restaurants Chapter 11 plan of reorganization confirmed

By Sarah Lizee

Olympia, Wash., Dec. 17 – FIC Restaurants, Inc., which operates as Friendly’s Restaurants, received confirmation of its Chapter 11 plan of reorganization, according to an order filed Thursday in the U.S. Bankruptcy Court for the District of Delaware.

The company also received court approval of the sale of substantially all of its assets to Amici Partners Group, LLC for $1.99 million.

Distributions under the plan will be sourced from cash generated by continued operations, including cash collateral in connection with pre-petition credit facilities, proceeds from the asset sale and commitments obtained from senior secured lender and plan sponsor Sun Ice Cream Finance II, LP that provide for additional availability to fund the plan under its existing credit facility.

Friendly’s said the plan leaves all creditors holding allowed claims unimpaired and entitled to payment in full.

Specifically, holders of other priority claims will receive payment in full in cash.

Sun Ice Cream will waive, release and discharge its claims and all liens on the debtors’ assets and forgo any distributions related to the claims.

Holders of other secured claims will receive the collateral securing their claims or payment in full in cash.

Holders of general unsecured claims will receive payment in full in cash.

Interests will be retained.

Friendly’s is a restaurant company based in Wilbraham, Mass. The company filed Chapter 11 bankruptcy on Nov. 1 under case number 20-12807.

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