Finance
B. Riley-Backed Franchise Group Wins Brief Reprieve From Lenders
- Creditors set deadline for FRG to deliver debt overhaul plan
- Junior lenders agree to defer cash interest until Oct. 30
The amendment requires the creation of a special committee with two independent directors who can negotiate that restructuring.
Photographer: Tiffany Hagler-Geard/BloombergThis article is for subscribers only.
Lenders to Franchise Group Inc., the troubled firm at the center of turmoil surrounding B. Riley Financial Inc., gave its managers a short reprieve to work out a plan for its roughly $1.5 billion debt load.
A group of first-lien debt holders agreed to waive some covenants in Franchise Group’s credit agreement while tightening other protections for lenders and requiring milestones that include the delivery of a business plan and restructuring proposal by around mid-September, according to people familiar with the matter.