UPDATE 1-Courage Capital says wants to help Krispy Kreme
Fri Mar 11, 2005 06:34 PM ET
(Adds background on Krispy Kreme)
LOS ANGELES, March 11 (Reuters) - Courage Capital Management LLC said on Friday it has acquired over 6 percent of Krispy Kreme Doughnuts Inc.'s (KKD.N: Quote, Profile, Research) shares and wants to help the struggling doughnut maker raise cash, according to a regulatory filing.
The Nashville, Tennessee-based fund has acquired over 2.5 million shares in Krispy Kreme since the beginning of the year and currently holds about 3.9 million, or 6.34 percent, of the company's total shares, the filing said.
The fund's chief manager, Richard Patton, has contacted Krispy Kreme's management "to express an interest in assisting ... in a capital raise or other financing transaction," the filing said.
Officials from Courage Capital declined to comment further on the matter.
Shares of Krispy Kreme, a one-time darling of Wall Street, have been slammed in the wake of a U.S. Securities and Exchange Commission probe into its accounting, an earnings restatement, and a fall-off in sales of its signature doughnuts.
In recent weeks, the Winston-Salem, North Carolina-based chain has also been hard-hit by speculation that the chain may be forced into bankruptcy if it is unable to cover bad loans made to struggling franchisees.
Krispy Kreme shares rose 28 cents, or nearly 4 percent, to close at $7.45 Friday on the New York Stock Exchange. The stock is down more than 15 percent since the beginning of the year. |
