FAT Brands bankruptcy court approves global settlement backing Chapter 11 liquidation plan

FAT Brands Inc.

FAT Brands Inc.

FATAQ

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  • Bankruptcy court in Houston entered a Rule 9019 order authorizing a global settlement tied to planned credit-bid sales of substantially all assets.
  • The deal requires NewCos backed by the WBS ad hoc group to fund USD 9.23 million into a segregated plan funding account for wind-down and plan costs.
  • Debtors must file a liquidation plan reflecting the settlement by May 22, 2026, with confirmation still required for plan-related terms.
  • Objections to the final DIP and sale relief are deemed withdrawn, with related litigation to be suspended pending closing and then dismissed.
  • Liquidation trust distributions prioritize repayment of NewCo funding claims, then allocate proceeds among unsecured creditors, Resid noteholders, and prepetition noteholders.


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