Creditors Circle Over Fatburger Chain

Is Fatburger going under? Fatburger, the main affiliate of Andy Wiederhorn's Fog Cutter Capital Group, has missed numerous loan payments, been evicted from stores and received other unhappy demands from creditors.

And most worrying of all is the firm missing credit payments with the industry's giant lender, GE Capital.

On Dec. 9, GE declared Fatburger in default on four loans and demanded payment of $157,321 by Dec. 19. Fatburger did not meet the deadline, prompting GE to increase the interest rate on the debt.

GE told Fatburger that it was "engaging outside counsel to pursue its remedies."

Wiederhorn predicted Fatburger will reach a compromise with GE. "This will be resolved through negotiations," he said. - OregonLive.com

When you get right down to it, Fog Cutter hasn't posted an annual profit since 2003.