Friendly's $267M Debt Transfer Was Legal: PE Owner

Law360, New York (December 13, 2011, 4:13 PM EST) -- The private equity owner of Friendly Ice Cream Corp., parent of Friendly's restaurants, fired back Monday against accusations that it illegally transferred $267 million in debt to one of its affiliates in order to credit bid on the bankrupt chain while shirking pension liabilities.

An affiliate of Sun Capital Partners LLC asked a Delaware bankruptcy judge to dismiss the objections of the Pension Benefit Guaranty Corp. to the transfer. A second Sun Capital affiliate is using that note as a credit to scoop up the restaurant...
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