GE Capital Owed $45MM From Bankrupt KFC Franchisee
The Minneapolis Star Tribune reported a bankruptcy judge approved the sale of 14 KFC outlets from a bankrupt franchisee to Popeyes, even though KFC itself backed a higher bid for the restaurants. The franchisee’s main creditor, GE Capital, preferred the smaller Popeyes offer and expressed a palpable distrust of KFC in the Minneapolis courtroom of U.S. Bankruptcy Judge Nancy Dreher, the article said.
The report noted that GE Capital, owed $45 million, says it’s sure that AFC Enterprises, Popeyes’ corporate parent, will deliver $13.8 million on to buy 28 bankrupt restaurants, 14 each in Minnesota and California.
The Star Tribune added that a GE executive made clear in court that the company couldn’t count on KFC to do the same, even though KFC’s late-inning bid was for around $17 million.
To read the full Star Tribune article, click here.