Yardbird Group LLC seeks authority to sell substantially all its assets through a process involving lender-affiliated stalking horse SH Acquisition, LLC. The proposed consideration includes a credit bid of bankruptcy-financing and prepetition obligations. The U.S. Trustee has objected to the proposed $275,000 expense reimbursement for the bidder, arguing that it is unnecessary and may discourage competing bids. Sale motion, pp. 26, 33U.S. Trustee objection, pp. 2–6
The contemplated $5.4 million financing package includes up to $1.8 million in new money and $3.6 million of existing debt converted into postpetition loans. The September 22 interim order authorizes up to $1 million of new-money principal and up to $1 million of debt conversion. The broader facility remains conditional on final relief; these authorizations do not establish that the amounts have been advanced. Interim financing order, pp. 2, 12
This account covers the frozen court record through October 2, 2026. The reviewed evidence does not establish approved bidding procedures, final financing approval, or a completed sale.
Yardbird Group and ten affiliates filed Chapter 11 petitions on September 21, 2026. The court directed joint administration on September 22. First-day declaration, pp. 1–3
U.S. Bankruptcy Court for the District of Delaware
Case Number
26-11479
Petition Date
September 21, 2026
Case Snapshot
The proposed sale uses a lender credit bid
The sale motion proposes a credit bid using outstanding bankruptcy-financing and prepetition obligations, allocated first to the bankruptcy-financing obligations. This is conditional consideration rather than a fixed cash purchase price. The motion seeks bidding procedures for a sale of substantially all assets. Sale motion, pp. 26, 33
The reviewed evidence does not establish an eventual sale price or completed creditor distributions. The credit-bid proposal therefore should not be treated as a cash recovery estimate for unsecured creditors.
The $275,000 reimbursement is contested
On September 29, the U.S. Trustee objected to the proposed $275,000 expense reimbursement for SH Acquisition. The Trustee describes the bidder as controlled by Yardbird's prepetition and bankruptcy lenders and argues that the reimbursement is unnecessary and may discourage competing bids. Those are the Trustee's objections, rather than court findings or a denial of the requested protection. U.S. Trustee objection, pp. 2–6
The reviewed record leaves the reimbursement dispute unresolved. Its outcome and the terms of any approved bidding procedures remain open as of the evidence cutoff.
The full facility contemplates up to $1.8 million in new money
Brightwood Loan Services LLC serves as administrative and collateral agent for the bankruptcy financing. The interim order distinguishes the authority already granted from the broader facility contemplated pending final relief. Interim financing order, pp. 2, 12
Financing stage
New-money principal
Existing debt converted into postpetition loans
Approval posture
Interim facility
Up to $1 million
Up to $1 million
Authorized by the September 22 interim order
Full contemplated facility
Up to $1.8 million in total
Up to $3.6 million in total
Additional availability and final roll-up depend on final relief
Yardbird Bankruptcy Financing Components, USD
The full-facility amounts include the interim amounts. Conversion to the final two-for-one debt roll-up remains conditional. A roll-up converts existing debt into postpetition loans; it does not supply additional operating cash. The interim new-money principal authorization also carries specified premium and other obligations, and financing proceeds and cash collateral are restricted to permitted uses under the budget and financing documents. Interim financing order, pp. 2, 12
Expansion debt remained after restaurant closures
At filing, Yardbird had three company-operated restaurants in Dallas, Washington, D.C., and Chicago and two licensed locations in Las Vegas and Singapore. Los Angeles, Denver, and Miami had closed before bankruptcy. Chief Restructuring Officer Albert Altro attributes the distress to expansion expenditures, uneven location performance, pandemic effects, and debt burdens. First-day declaration, pp. 5, 10–12
Altro reports the following filing-date obligations. Their approximate arithmetic sum is $24.84 million, using the reported minimum Brightwood principal. This is not an audited total and excludes additional Brightwood interest, fees, and other amounts. First-day declaration, pp. 7–10
Obligation
Reported filing-date amount and scope
Brightwood facility
Principal of not less than $13,324,252; excludes additional interest, fees, and other amounts
City National Bank of Florida Main Street facility
Approximately $8,387,916.71 outstanding
inKind credit-purchase agreement
Approximately $3,126,442.60 outstanding
Arithmetic sum of listed amounts
Approximately $24.84 million, using Brightwood's reported minimum principal
Reported Financing Obligations and Their Scope, USD
The declaration separately estimates unsecured claims of approximately $24,155,000. That estimate is not an allowed-claims total, and the reviewed evidence does not reconcile its overlap with the listed financing obligations. The figures should not be added together as a definitive liability total. First-day declaration, pp. 7–10
The inKind arrangement supplied working capital in exchange for customer redemption credits. Nation's Restaurant News reported on September 21 that City National had sued Yardbird in March for breach of contract and that the litigation remained pending. First-day declaration, pp. 7–10Nation's Restaurant News
Hearing dates remain subject to the reviewed record
The revised sale-motion notice schedules a hearing for October 13, 2026, at 1:30 p.m. Eastern Time, with objections due October 6. The financing schedule sets final financing objections for October 13 at 4 p.m. Eastern Time and a final financing hearing for October 20 at 10 a.m. Eastern Time. These are scheduled proceedings in the October 2 record. Sale-motion noticeInterim financing order, p. 55Final financing hearing schedule
The sale motion proposes an October 27 bid deadline, a November 2 auction, and a November 9 sale hearing, subject to approval. Those proposed dates are distinct from the financing order's sale covenants, which require qualified bids within 37 calendar days of filing, an auction within 45 days, a sale hearing within 50 days subject to court availability, and closing within 53 days. Sale motion, pp. 183–185Interim financing order, pp. 18–23
The reviewed evidence leaves the proposed reimbursement, bidding procedures, and final financing relief unresolved. It does not establish a completed auction or sale, or a confirmed plan.
Sources
Sale motion, pp. 26, 33 /documents/39350e38-2e69-417d-a595-d02536d8f6c7/
U.S. Trustee objection, pp. 2–6 /documents/5db80d28-1bdc-4742-8bd5-ad048f64e17a/
Interim financing order, pp. 2, 12 /documents/219fdb59-cc08-44b4-8588-82aa47f39e3b/
First-day declaration, pp. 1–3 /documents/54b5beef-22f2-4036-bc5d-6128eb0376b7/
Joint-administration order /documents/5bc6206f-97d3-4c26-91ca-4cb92dbdd2ac/
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. See the disclaimer.