Friendly's Creditors, PE Owner Settle Credit Bid Fight

Law360, Wilmington (December 15, 2011, 6:10 PM ET) -- Bankrupt Friendly Ice Cream Corp. and its owner Sun Capital Partners LLC minted a deal with unsecured creditors Thursday that clears the private equity firm to bid $50 million in debt toward retaining control of the family restaurant chain.

The settlement averted a showdown Thursday in Delaware bankruptcy court with unsecured creditors and Pension Benefit Guaranty Corp., which held that a $267 million note owed to the private equity firm by Friendly was actually a capital contribution that should be considered equity and, therefore, not suitable...
To view the full article, register now.

Dewey Verdict Watch

Follow our exclusive coverage of the trial of the year:

Dewey Trial Day 72