Hooters of America Seeks Chapter 11 Protection in Major Debt Restructuring Effort

Hooters of America, the renowned casual dining and sports entertainment chain, has filed for chapter 11 protection amidst efforts to restructure about $380 million in funded debt. The filing is being handled by the legal expertise of Ropes & Gray, representing Hooters in proceedings within the United States Bankruptcy Court for the Northern District of Texas. The restructuring strategy involves a debt restructuring supported by over $75 million in financing, which includes $40 million from debtor-in-possession funding sourced from its existing lenders, and an additional $35 million in new capital. The core team from Ropes & Gray includes business restructuring partners Chris Dickerson and Ryan Preston Dahl, finance partner Patricia Lynch, counsel Brett Pearlman, and business restructuring associate Rahmon Brown. The decision has near-unanimous support from Hooters' main stakeholders, underlining confidence in the recovery strategy.