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Specializing in insolvency and complex commercial matters since 1974

Plan Confirmed For Owner Of Chain Of Restaurants Under Chapter 11

On August 20, 2009, the United States Bankruptcy Court for the Middle District of Florida, Ft. Myers Division, ruled that the Chapter 11 Plan filed by Gyarmathy & Associates, Inc., and five affiliated companies would be confirmed. Post reorganization, the companies will own and operate a chain of eleven upscale fast food restaurants and one alehouse/barbeque restaurant, with approximately 250 employees and locations from Naples to Clearwater, Florida. In this case, the plan featured: (i) the restructuring of obligations to General Electric Capital Franchise Finance Corporation [owed approximately $9 million on the petition date], (ii) the surrender of property to various secured lenders in satisfaction of their secured claims [approximately $4 million on the petition date], and (iii) a restructuring of several million dollars in obligations to unsecured creditors. Daniel R. Fogarty led the firm’s representation in these cases.