Premier Kings sale draws objection from unsecured creditors committee

By Sarah Lizee

Olympia, Wash., Dec. 6 – Premier Kings, Inc.’s official committee of unsecured creditors objected to the company’s motion to sell several of its stores to Mosaic Gold Crown Group, LLC, Burger King Co. LLC, RRG of Jacksonville, LLC and Bulldog Restaurants, LLC, according to documents filed Wednesday with the U.S. Bankruptcy Court for the Northern District of Alabama.

“The consideration provided under the APAs does not provide sufficient assurance that the debtors’ estates will be left with sufficient funds and assets to confirm a plan, satisfy all administrative claims, priority claims, and wind-down costs, let alone provide for a distribution to unsecured creditors,” the committee said in the objection.

The committee also called the sales a sub rosa plan in an attempt to avoid plan disclosure requirements, only for the benefit of the debtors’ secured lenders.

The group also stated that the proceeds from the debtors’ settlement with Burger King are not proceeds of the sales and are not proceeds of the secured lenders’ collateral.

The committee said it has objected to the secured lenders’ claims, and the court should not allow any distributions of the proceeds of the sales until such time as the court can resolve the committee’s objection.

As previously reported, Mosaic Gold Crown was named winning bidder for stores in the Atlanta region, with a bid of $7.25 million. Burger King was named backup bidder with a $7 million bid.

Burger King was named winning bidder for the North Alabama stores, with a bid of $24.2 million. Newell-Berg Alliance AL, LLC and Newell-Berg Alliance TN II, LLC were named backup bidders, with a bid of $23.04 million.

RRG of Jacksonville was named winning bidder for the Jacksonville and Savannah stores, with a bid of $15.25 million.

Bulldog Restaurants was named winning bidder for the Central and South Alabama stores, with a bid of $8 million.

A sale hearing will take place on Dec. 11.

Peachtree Corners, Ga.-based Premier Kings filed bankruptcy on Oct. 25 under Chapter 11 case number 23-02871.

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