Bracebridge Capital's Role in Hooters' Bankruptcy Loan

Hooters of America, undergoing a Chapter 11 reorganization, has identified Bracebridge Capital as a key participant in its bankruptcy financing.

This decision, disclosed through sources wishing to remain anonymous due to confidentiality concerns, highlights Bracebridge Capital's involvement in supporting Hooters during its financial restructuring.

The restaurant chain recently initiated the bankruptcy filing process, which involves dealing with about $300 million in bonds. These bonds are secured by the company's franchise operations.

As part of the reorganization plan, Hooters aims to secure $40 million in debtor-in-possession financing. This package includes $35 million in new funding, secured from some of the company's current lenders, as stated in a news release earlier this week.