IRVINE—Calif., May 15, 2002—The Orange County Register reported today that Latin Intellectual Properties Inc., will pay $15 million to buy the 14-restaurant Hamburger Hamlet chain from Irvine-based Prandium, Inc., which also owns Koo Koo Roo’s and Chi-Chi’s. Those familiar with deal say it should close in July.
According to the story, Prandium will use profits from the sale of Hamburger Hamlet to pay off some of its debt. Prandium is expected to file a pre-packaged bankruptcy on May 6.th .
If the court approves the bankruptcy plan, Prandium will be able to focus on growing its restaurant businesses instead of paying $30 million a year in interest, Prandium spokesman Robert L. Carl told The Register.
“It’s a luxury we’ve not had the last six or eight years,” the paper reported Carl as saying.
A settlement agreement between Prandium and its creditors fell through in February when an earlier deal between Prandium and Othello Holding Corp. failed to happen.