Latham Represents FAT Brands Inc. in Confirmed Ch. 11 Plan Involving US$1.5 Billion in Funded Debt

Latham & Watkins advised FAT Brands Inc., Twin Hospitality Group Inc., and 184 debtor subsidiaries (collectively, FAT Brands) in the confirmation of their chapter 11 liquidating plan, following four separate asset sales, constituting substantially all of the FAT Brands assets, in the US Bankruptcy Court for the Southern District of Texas. The plan became effective on July 31, 2026, approximately six months from the petition date.

FAT Brands owned 18 restaurant brands, including Johnny Rockets, Fazoli's, and Twin Peaks, with over 2,200 owned and franchised locations and over 40,000 employees (of the Debtors and franchisees) worldwide. The complex prepetition capital structure included (i) four whole-business securitizations, in which special-purpose finance vehicles issued approximately US$1.4 billion in fixed-rate notes secured by substantially all of FAT Brands’ revenue-generating brand assets, and (ii) a fifth securitization facility secured by management fees and equity interests that brought total securitized debt to roughly US$1.5 billion.

Latham led FAT Brands through an expedited 363 sale process that resulted in four separate asset sales of substantially all of the debtors' assets, eliminating close to US$1 billion in debt. Ultimately, the Debtors were able to effectuate multiple settlements with various groups of securitization noteholders and the Official Committee of Unsecured Creditors. Such hard-fought settlements paved the way to consummating the sale transactions and confirmation of a largely consensual chapter 11 plan.

Restructuring partners Ray C. Schrock, Ted A. Dillman, and Natasha Hwangpo led the Latham team, complemented by Latham’s world-class M&A, litigation, securitization, finance, and tax teams.