Bankrupt Friendly's Owner Gets Green Light For $50M Loan

Law360, Wilmington (October 6, 2011, 7:45 PM EDT) -- A Delaware bankruptcy judge on Thursday gave the go-ahead for a $50 million loan to sustain Friendly Ice Cream Corp. as the reeling diner chain owner moves to sell its assets to an affiliate of private equity firm Sun Capital Partners Inc.

The Wilbraham, Mass.-based company — which has been operating Friendly’s restaurants for 76 years — filed for court protection Wednesday, saying it planned to shutter 63 of its 490 locations.

U.S. Bankruptcy Judge Kevin Gross signed off on the loan, which was provided by...
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