LRI Holdings and Logan’s Roadhouse enter payment default forbearance

By Caroline Salls

Pittsburgh, May 13 – LRI Holdings, Inc., Logan’s Roadhouse, Inc. and its subsidiary guarantors entered into forbearance agreements with some noteholders and lenders, according to an 8-K filed Friday with the Securities and Exchange Commission.

The noteholders and lenders agreed not to exercise default-related rights until June 30. The defaults covered by the forbearance agreement include the failure to make the cash interest payments due April 15 under the company’s series 2015 notes indenture and its 10¾% notes indenture.

As a result of the additional flexibility afforded under the forbearance agreements, LRI Holdings and Logan’s said they do not intend to make the cash interest payments during the forbearance period.

The agreement is intended to give the company time to continue discussions with the forbearing parties related to strategic alternatives to reduce debt and improve liquidity.

Logan’s is a Nashville-based restaurant chain.

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