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Logan’s Roadhouse proposes alternate procedures for claims resolution
By Caroline Salls
Pittsburgh, Oct. 20 – Logan’s Roadhouse, Inc. requested court approval of alternative dispute resolution procedures, including mandatory mediation “to facilitate the efficient resolution of the unliquidated, complex and litigation claims filed against the debtors in these Chapter 11 cases,” according to a motion filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.
Logan’s said it is looking to resolve claims and distribute the consideration provided to general unsecured creditors under its Chapter 11 plan.
According to the motion, there have been about 6,000 proofs of claim filed in the cases, of which about 4,800 are related to a Fair Labor Standards Act action and at least another 100 that were filed in unliquidated amounts.
“At present, these disputed claims provide a significant barrier to the debtors’ ability to make distributions to their creditors in an expeditious timeframe,” the company said.
Logan’s said the alternative dispute resolution procedures will allow it to avoid, up-front, the costs and delays associated with contested claim litigation while safeguarding the procedural rights of the holders of these claims, the debtors, insurers and third-party payors.
The company said the procedures will promote direct settlement discussions and allow claimants the opportunity to fully develop and support their claims and, absent a settlement as a result of direct discussions between the parties, promote resolution of the claims through mediation or arbitration with the assistance of a neutral outside party.
A hearing is scheduled for Nov. 9.
Logan’s, a Nashville-based restaurant chain, filed bankruptcy on Aug. 8. The Chapter 11 case number is 16-11819.
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