Overview
- UMB Bank issued acceleration notices declaring about $1.26 billion immediately due across FAT Brands’ securitized debt, including $158.9 million tied to FB Resid notes.
- CEO Andy Wiederhorn told the ICR conference the obligations are secured at brand-level trusts rather than guaranteed by the parent, and he asserted roughly $60 million in free cash flow from operations.
- Management said prolonged negotiations with approximately 25 noteholders have stalled, increasing the likelihood of a debt-stack restructuring or targeted Chapter 11 filings for specific subsidiaries.
- SEC filings show just $2 million in cash and $10 million in restricted cash, with a paused dividend intended to preserve $35–$40 million annually as sales and profitability weaken.
- Legal and market pressures include franchisee suits alleging misuse of marketing funds at Round Table Pizza and the risk of Nasdaq delisting after the stock traded below $1, with a separate federal probe previously dropped.