Luby's to expand credit facility to fund Fuddruckers purchase

By Sara Rosenberg

New York, June 18 - Luby's Inc. plans to expand its credit facility to help finance its acquisition of Fuddruckers Inc. for roughly $61 million in cash, according to a news release.

Other funding will come from cash on hand.

Fuddruckers filed for Chapter 11 bankruptcy protection on April 21. Luby's participated in an auction of substantially all of Fuddruckers' assets and was declared the successful bidder.

However, the sale remains subject to the approval of the United States Bankruptcy Court for the District of Delaware.

The Bankruptcy Court has scheduled the final hearing on the sale motion for June 22, and the transaction is expected to close on or before July 9.

Luby's is a Houston-based operator of restaurants.

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