Bonds
TGI Friday’s Loses Control of Assets After Document Delay
- Functions like personnel decisions shift to backup manager
- A similar management change hasn’t happened since GFC: Kroll
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TGI Friday’s Inc. management has lost day-to-day control of much of the restaurant chain’s assets and functions after the company failed to file documents to bondholders on time.
A manager termination notice was issued Tuesday involving a $375 million asset-backed security sold in 2017 and backed by most of TGI Friday’s revenue-generating assets, according to Kroll Bond Rating Agency. It called the termination event the first involving a so-called whole business securitization since the Great Financial Crisis.