FAT Brands is in a court-supervised liquidation after its Chapter 11 plan became effective on July 31, 2026. The liquidation trustee’s work now includes reconciling claims under procedures approved October 23 Dkt. 1803, while a dispute over the cure amount for certain Round Table franchise agreements awaits resolution.

FAT Brands and its affiliated debtors are winding down under a liquidation plan confirmed on July 27, 2026 and effective July 31, 2026, as reported in the notice of effectiveness Dkt. 1671. The confirmation order Dkt. 1644 appointed Mohsin Y. Meghji as liquidation trustee and provides for remaining assets to be liquidated and proceeds distributed under the plan following court-authorized asset sales. Existing equity interests receive no distribution.

The restaurant franchisor and operator filed for Chapter 11 on January 26, 2026. Its first-day declaration Dkt. 15 reported approximately $1.45 billion of funded debt at the petition date, including securitization notes and other debt. Management fees did not cover operating costs, and debt-service penalties, litigation costs and other pressures depleted liquidity. The debtors said their use of securitization collections for operations triggered defaults, and negotiations with noteholders had not produced a restructuring agreement before filing.

The court authorized postpetition financing and cash-collateral use in a final financing order Dkt. 1366 and approved asset sales, including a primarily credit-bid transaction for the Twin Peaks assets under the sale order Dkt. 1378. The confirmed plan established a liquidation trust to administer remaining assets and retained causes of action and to make distributions according to its waterfall.

The trustee can now prosecute omnibus claims objections under the October 23 procedures order Dkt. 1803. Separately, certain Round Table franchisees seek at least $10.6 million to cure alleged advertising-fund defaults in their pretrial brief Dkt. 1787; FBG Bid Co. disputes the alleged defaults and requests a zero cure amount in its supplemental pretrial brief Dkt. 1795. The dispute’s resolution and claims reconciliation are material steps in the wind-down.

FAT Brands is in a court-supervised liquidation after its Chapter 11 plan became effective on July 31, 2026. The liquidation trustee’s work now includes reconciling claims under procedures approved October 23 Dkt. 1803, while a dispute over the cure amount for certain Round Table franchise agreements awaits resolution.

FAT Brands and its affiliated debtors are winding down under a liquidation plan confirmed on July 27, 2026 and effective July 31, 2026, as reported in the notice of effectiveness Dkt. 1671. The confirmation order Dkt. 1644 appointed Mohsin Y. Meghji as liquidation trustee and provides for remaining assets to be liquidated and proceeds distributed under the plan following court-authorized asset sales. Existing equity interests receive no distribution.

The restaurant franchisor and operator filed for Chapter 11 on January 26, 2026. Its first-day declaration Dkt. 15 reported approximately $1.45 billion of funded debt at the petition date, including securitization notes and other debt. Management fees did not cover operating costs, and debt-service penalties, litigation costs and other pressures depleted liquidity. The debtors said their use of securitization collections for operations triggered defaults, and negotiations with noteholders had not produced a restructuring agreement before filing.

The court authorized postpetition financing and cash-collateral use in a final financing order Dkt. 1366 and approved asset sales, including a primarily credit-bid transaction for the Twin Peaks assets under the sale order Dkt. 1378. The confirmed plan established a liquidation trust to administer remaining assets and retained causes of action and to make distributions according to its waterfall.

The trustee can now prosecute omnibus claims objections under the October 23 procedures order Dkt. 1803. Separately, certain Round Table franchisees seek at least $10.6 million to cure alleged advertising-fund defaults in their pretrial brief Dkt. 1787; FBG Bid Co. disputes the alleged defaults and requests a zero cure amount in its supplemental pretrial brief Dkt. 1795. The dispute’s resolution and claims reconciliation are material steps in the wind-down.