SD-Charlotte confirms liquidating plan after restaurant Chapter 11
The court confirmed a joint Chapter 11 liquidation plan for SD-Charlotte, SD-Missouri, RTHT Investments and SD Restaurant Group on August 17, 2020, ending the operating-case phase and moving the estates into wind-down under a plan administrator and oversight committee. The plan treated Bridge Funding Group’s prepetition secured lender claims as the accepting Class 1, left other secured claims unimpaired, and deemed general unsecured claims, intercompany claims and equity interests to reject; distributions run through a wind-down fund and related reserves. source filing
The cases opened February 7, 2020 in the Western District of North Carolina, with SD-Charlotte listing $1 million to $10 million in assets, $1 million to $10 million in liabilities and 200 to 999 creditors. The debtor group operated 73 Sonic Drive-Ins, 14 MOD Pizza stores and 3 Fuzzy’s Taco Shops across the Southeast, employing about 1,900 people; Bridge Funding Group was owed at least $22.3 million in principal, while SRI Holding Company provided a $450,000 prepetition bridge advance and later served as DIP lender. The first-day DIP motion sought up to $4.6 million, including a $450,000 roll-up, to fund operations and the Chapter 11 process while the debtors pursued sales and liquidation. source filing source filing source filing