Creditors Stick Fork In Buffets Chapter 11 Plan
Creditors say that last month's filing of Buffets Holdings for Chapter 11 bankruptcy was not in good faith.
On October 31 Buffets Holdings, a conglomerate of restaurant and franchising chains such as Old Country Buffet, HomeTown Buffet, Ryan's and Tahoe Joe's Famous Steakhouse, filed for Chapter 11 bankruptcy to profitably reorganize its restaurant chains. Mike Andrews, Chief Executive Officer of Buffets Holdings, said, "We believe that all of the parties involved will agree that the proposed plan is a fair and reasonable settlement and compromise of all outstanding issues and provides the best opportunity for maximum recoveries for creditors."
Nice words—"fair and reasonable." But Buffet Holdings creditors feel like there is nothing fair and reasonable about the filing.
This from Bankruptcy Law 360 ($$):
"The unsecured creditors are fighting back against the reorganization plan put forth by Buffets Holdings Inc., arguing that the steak buffet chain's plan to escape from bankruptcy has not been proposed in good faith.
"On Friday, the official committee of unsecured creditors filed an objection with the U.S. Bankruptcy Court for the District of Delaware . . . "
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