Prandium has elected not to pay the semi-annual interest payments due (i) July 31st on the 15% Senior Discount Notes maturing January 24, 2002 and 14% Senior Secured Discount Notes maturing January 24, 2002 of its subsidiary, FRI-MRD Corporation, and (ii) August 1st on its 9.75% Senior Notes maturing February 1, 2002 and 10.875% Senior Subordinated Discount Notes maturing February 1, 2004. Earlier this year, Prandium and FRI-MRD Corporation elected not to pay similar interest payments, due on or about February 1, 2001, resulting in the occurrence of ``Events of Default'' under these debt instruments. The occurrence of the ``Events of Default'' entitled the holders of the debt to certain rights, including the right to accelerate the debt. The Company is continuing to negotiate with certain creditors to determine an acceptable capital restructuring of Prandium and its subsidiaries. While there can be no assurances that the Company will be able to successfully negotiate with its creditors or successfully resolve its capital structure, completion of this process continues to be one of the Company's highest priorities in 2001.
Prandium(TM) operates a portfolio of full-service and fast-casual restaurants including Koo Koo Roo®, Hamburger Hamlet®, and Chi-Chi's® in the United States. Prandium, Inc. is headquartered in Irvine, California. To contact the company call (949) 757-7900, or the toll free investor information line at (888) 288-PRAN, or link to www.prandium.com. Address email to [email protected]
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