BurgerFi International, owner of the dining chain Anthony’s Coal Fired Pizza & Wings, received interim court approval of its “first day” motions designed to facilitate and ensure the continued and uninterrupted operations of the company’s 144 locations, as requested.
The court granted interim approval for the company to immediately access $3.5 million of the debtor-in-possession (DIP) financing provided by an affiliate of TREW Capital Management. The court also approved the use of the company’s existing employee benefits, cash management systems and customer programs. With the DIP financing approved by the court, the company has the liquidity to stabilize its operations and work with its vendors and landlords to meet the high standards for the BurgerFi and Anthony’s brands.
“The Company has worked very hard to ensure that the transition into chapter 11 would have no impact on our valued employees, customers and franchise partners,” Carl Bachmann, CEO of BurgerFi, said. “We are very pleased that we received approval of our key motions to support our continued operations including employee wages and benefits, cash management and customer programs.”
As part of the financing agreement, the company intends to propose a sale process and bidding procedures for a sale with the support of its lenders. The “second day” hearing seeking final approval for the company’s requests is scheduled for Oct. 7, 2024.
“Receipt of interim approval of our DIP financing provides the company with liquidity to fund operating expenses and meet obligations while we restructure,” Jeremy Rosenthal, chief restructuring officer of BurgerFi, said. “We now have the liquidity for operations at BurgerFi and Anthony’s to continue as usual.”
The company filed its voluntary petitions on Sept. 11, 2024, in the U.S. Bankruptcy Court for the District of Delaware in Wilmington.
David Heidecorn served notice to the board of directors of his resignation as an independent member of the board of directors and as chairman of the board, effective immediately.
Proposed advisors to the company are Raines Feldman Littrell, Force Ten Partners, with Jeremy Rosenthal as the company’s chief restructuring officer and Sitrick And Company as strategic communications advisor to the company.
