FAT Brands – parent company of Fazoli’s, Round Table Pizza, and Fatburger — may “seek to reorganize through a bankruptcy proceeding” after receiving notices of acceleration on the company’s debt. According to a recent 8-K filing with the SEC, lender UMB Bank declared roughly $1.26 billion in securitized debt immediately due.
The company had previously received default notices after failing to make scheduled payments on Oct. 27 due to insufficient funds in its collection accounts. The filing states that FAT Brands and its financing subsidiaries “do not currently have amounts on hand” to pay the accelerated principal and interest. The company warned that the acceleration — or a potential foreclosure on the collateral —…