A Jefferies Financial Group Inc.-backed hedge fund sued the owner of Fatburger, Johnny Rockets and Ponderosa Steakhouse over control of millions of dollars during the restaurant chain owner’s bankruptcy.
FAT Brands Inc. shouldn’t be allowed to use monthly management fees and leftover cash from other parts of its business to fund its reorganization, lender 352 Capital GP LLC told the US Bankruptcy Court for the Southern District of Texas in a Feb. 13 complaint.
The hedge fund, which invested about $104 million in special notes issued by a FAT Brands subsidiary, said the company transferred ownership of the fees and ...