Triarc To Buy Arby's Franchisee For $8 Million, Plus Investment
Tuesday November 26, 10:13 am ET
NEW YORK -(Dow Jones)- The U.S. Bankruptcy Court for the Southern District of New York confirmed Triarc Cos.' plan of reorganization in which Triarc will acquire Sybria Inc., the second largest franchisee of the Arby's brand.
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Triarc, a franchisor of Arby's sandwich shops, expects to close the acquisition in the fourth quarter.
Sybra, a unit of I.C.H. Corp. (AMEX:IH - News) and currently in Chapter 11, owns and operates 239 Arby's restaurants in nine states.
Triarc will pay $8 million to ICH's creditors for a reorganized Sybra. In addition, Triarc will make a $14.5 million investment in Sybra, and Sybra will remain exclusively liable for its long-term debt and capital lease obligations, which totaled about $104 million as of Dec. 31, 2001.
Triarc also will make available to, or obtain for, Sybra a $5 million standby financing facility for each of three years to fund any operating shortfalls of Sybra.
After a bankruptcy court in August terminated ICH's exclusive right to file a reorganization plan, ICH and Triarc in September filed competing Chapter 11 plans and accompanying disclosure statements.
ICH's plan called for a distribution of funds contributed by RTM Newco, an affiliate of RTM Inc., as a capital contribution to the reorganized company. RTM Inc., the largest franchisee of Arby's restaurants, received support from insiders of ICH, while Triarc was supported by most of ICH's secured lenders. |
