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2-17-04 Avado Brands Seeks Chapter 11 Protection

AVADO Has Changed Management in Recent Months and Now Seeks Protection While It Restructures

AVOC Article

February 17, 2004

AVADO Brands, Formerly Apple South, Has Been Asset for Morgan County

By Wendell Dawson, AVOC Editor

AVADO Brands, formerly known as Apple South, has seen its stock value and fortunes severely decline in the last few years.

AVADO Brands was once known as Apple South and the owner of more Applebees Franchises than any other companies.  It's founder, Tom Dupree, was a benefactor for Madison and Morgan County.  At one time, the Dupree Scholarship program was paying for a four year college education at Georgia Tech for any graduate of Morgan County High School.  Many Morgan County residents benefitted from the program.

Mr. Dupree also sponsored other school and recreational activities in Madison-Morgan.  Apple South was a large employer that was headquartered in Madison.

AVOC hopes the company can be salvaged and that jobs will be saved in the region.

Some information about the restructuring can be found at the sites noted below.

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 AVADO Newsroom

           

Madison, Georgia

 

   SEE:  http://www.avado.com/news/ArticleDisplay.asp?ID=410

  

February 4, 2004

 

Avado Brands Seeks Chapter 11 Protection To Assist Financial Restructuring

 

MADISON, Ga., Feb. 4 /PRNewswire-FirstCall/ -- Avado Brands, Inc. (OTC Bulletin Board: AVDO.PK - News; "Avado" and "the Company"), parent company of Don Pablo's Mexican Kitchen and Hops Grillhouse & Brewery, announced that it has filed voluntary petitions in the U.S. Bankruptcy Court for the Northern District of Texas for relief under Chapter 11 of the U.S. Bankruptcy Code. The Company will continue to operate its restaurants while it restructures.

The Company has filed various first-day motions with the Bankruptcy Court intended to allow the continued operation of its business. In addition, the Company has arranged and sought Bankruptcy Court approval for a $0 million debtor-in-possession credit facility to be provided by a group of lenders led by DDJ Capital Management, LLC. With this facility, the Company will have sufficient liquidity to operate its business.

"This is an important step for Avado Brands, and is part of a process that will result in a stronger company," said Avado Brands' interim chief executive officer Kevin Leary of AlixPartners LLC. "Our goals are simple: to reduce Avado Brands' debt burden and put the company in a position to invest in its business and grow. The management team is confident in the future of Avado Brands and its Don Pablo's and Hops restaurants, and we appreciate the continued support of our customers, dedicated employees and business partners."

Prior to today's filing, the Company had successfully negotiated forbearance agreements with its secured lenders and holders of Avado's 9-3/4% Senior Notes due 2006. The Company will continue to negotiate with these and other creditors to develop a long-term financial restructuring plan.

The case number for Avado's filing with the U.S. Bankruptcy Court for the Northern District of Texas is # 04-31555, and further information will be available online at http://www.txnb.uscourts.gov.

About Avado Brands

Avado Brands owns and operates two proprietary brands comprised of 106 Don Pablo's Mexican Kitchens and 62 Hops Grillhouse & Breweries.
Additional information about Avado Brand is available at http://www.avado.com.

 

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February 6, 2004


 
Avado Brands Receives Court Approval For “First-Day” Motions

 

Court Authorizes Motions to Continue Normal Operations, Grants Interim Approval of Debtor-in-Possession Financing

Final Debtor-in-Possession Hearing Scheduled for March 4, 2004

MADISON, GA., February 6, 2004 – Avado Brands, Inc. (OTC BB: AVDO.PK) (“Avado” and “the Company”), parent company of Don Pablo’s Mexican Kitchen and Hops Grillhouse & Brewery, announced today that the U.S. Bankruptcy Court for the Northern District of Texas has approved “first-day” motions that are intended to support the Company’s employees and customers and provide other forms of operational and financial stability during the Company’s time under the protection of Chapter 11 of the U.S. Bankruptcy Code.

………………………………
The Bankruptcy Court today gave interim approval of a $0 million debtor-in-possession (DIP) credit facility which is to be provided by a group of lenders led by DDJ Capital Management, LLC, as administrative and collateral agent, for use by the Company to fund ongoing working capital and general corporate needs, as well as repay the Company’s prepetition secured lenders. Following completion of final documentation, the Company will have access to $5.5 million in funds to operate its business prior to a hearing for the final approval of the DIP financing, scheduled for March 4, 2004.

“These are important first steps in this process and provide a smooth transition so that we can continue normal business operations,” said Avado Brands’ interim chief executive officer Kevin Leary of AlixPartners LLC.

The case has been assigned to the Honorable Chief Judge Steven A. Felsenthal under case number 04-31555. Further information can be obtained via the Internet at
http://www.txnb.uscourts.gov.

 

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FoodService.Com

 

Monday November 10, 2003

 

See: http://www.foodservice.com/news/company_news_detail.cfm?id=7863&company_name=Avado%20Brands

 

 

Avado Brands Announces Management Changes; Kevin Leary Named Interim Chief Executive Officer, Robert Sroka Named Acting Chairman of the Board

Copyright (C) 2003 PR Newswire. All Rights Reserved., PR Newswire

MADISON, Ga., Nov 10, 2003 /PRNewswire-FirstCall via COMTEX/ -- Avado Brands, Inc. (OTC Bulletin Board: AVDO), parent company of Don Pablo's Mexican Kitchen and Hops Grillhouse & Brewery, today announced that the company will be appointing Kevin Leary of AlixPartners, LLC as Interim Chief Executive Officer, and Robert Sroka as Acting Chairman of the Board. In addition, the company announced the resignation of the company's founder, chairman and CEO, Thomas DuPree, Jr., and its chief administrative officer, Margaret (Beth) Waldrep.

"I am looking forward to joining Avado Brands' management team," said Leary. "Having considerable experience in both the restaurant business and assisting financially troubled companies, I am very excited about working closely with the management team in meeting the challenges that lie ahead."

Mr. Leary has served in a variety of turnaround executive and operating officer roles and previously served in senior operating and financial executive positions at several restaurant chains including Au Bon Pain, Hilltop Steak Houses and Gloria Jeans Coffee.

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