Law Office of Camron Hoorfar, PC

NPC International Inc., the nation’s largest franchisee of Wendy’s and Pizza Hut restaurants, has a deal to sell itself out of bankruptcy to Flynn Restaurant Group LLC. Flynn, the largest restaurant franchise operator in the U.S., is offering $816 million to buy the more than 1,300 restaurants operated by NPC. NPC filed chapter 11 bankruptcy in July and has been marketing assets. The stalking-horse offer could be subject to higher and better offers and requires bankruptcy court approval. It is likely to face competition from other interested buyers, including possibly Wendy’s Co. itself. Wendy’s said on Nov. 2 that it was considering making an offer for nearly 400 Wendy’s restaurants operated by NPC as part of a consortium with other Wendy’s franchises. Both Wendy’s and Pizza Hut LLC have expressed concerns about NPC’s quick timeline for a sale, and have pushed for greater involvement in vetting who will be the new owner of NPC’s restaurants. Wendy’s has signaled it would oppose a sale to Flynn, which operates Arby’s and Panera Bread restaurants that also sell sandwiches. Wendy’s has traditionally preferred franchisees that only own its restaurants, and Arby’s could be viewed as a direct competitor in the burger business. In addition to the Wendy’s restaurants, NPC operates roughly 900 Pizza Huts.

Struggling financially? Please contact our office at 816-524-4949 or you can visit our website at hoorfarlaw.com to schedule an appointment.

Las Vegas Monorail Co., a transit system financed with municipal debt that serves some of the city’s marquee hotels, filed for bankruptcy for the second time in just over a decade after the coronavirus pandemic shut down service. The nonprofit transit system is proposing a quick bankruptcy sale to the Las Vegas Convention and Visitors Authority for about $24 million. The bulk of the purchase price is held entirely by municipal-bond investor Preston Hollow Capital LLC.

Contemplating bankruptcy? Contact our office at 816-524-4949 or you can visit our website at hoorfarlaw.com to schedule an appointment.

As a growing number of law firms look to contract with third-party vendors to outsource business operations, a $128 million lawsuit filed by LeClairRyan’s bankruptcy trustee against UnitedLex makes it clear that the risks to both sides can be high. LeClairRyan’s trustee alleged that the terms of the deal with UnitedLex, which resulted in the creation of a joint venture to handle support services, served only to push the cash-strapped firm “further into insolvency.” Now UnitedLex itself faces substantial liability for allegedly sucking money out of the firm, at the expense of LeClairRyan’s other creditors. In June 2018, the two entities unveiled the launch of ULX Partners LLC, a joint venture that was intended to allow LeClairRyan and other law firms to outsource back-office operations and receive equity stakes in the new company. “If we don’t reach 10,000 employees in the next five years, then I’m not doing something right,” UnitedLex founder Dan Reed told The American Lawyer at the time. “Some people would view that as heretical, but it’s not.” But little over a year later, in August 2019, LeClairRyan announced its dissolution, following months of partner defections that had begun before the UnitedLex deal. The firm filed for bankruptcy five weeks later. And as its fate became increasingly apparent over the course of that summer, UnitedLex had nothing to say about the status of ULX.

Struggling financially? Please contact our office at 816-524-4949 or you can visit our website at hoorfarlaw.com to schedule an appointment.

Friendly’s Restaurants LLC, an iconic chain on the East Coast of the U.S. known for its sundaes, became the latest dining institution to go bankrupt amid the pandemic. The company filed for chapter 11 bankruptcy protection in Delaware. It listed estimated liabilities of $50 million to $100 million, and estimated assets of $1 million to $10 million. FIC Restaurants Inc., which operates the Friendly’s brand, will sell almost all of its assets to Amici Partners Group. Nearly all of Friendly’s 130 corporate-owned and franchised restaurant locations are likely to remain open subject to pandemic limitations.

Contemplating bankruptcy? Contact our office at 816-524-4949 or you can visit our website at hoorfarlaw.com to schedule an appointment.