CTI Foods, Burger Supplier to Fast Food Chains, Files Bankruptcy

CTI Foods LLC, the frozen meat supplier owned by Thomas H. Lee Partners and Goldman Sachs Group Inc., filed for bankruptcy protection with a plan to hand ownership to lenders in exchange for slashing debt by $405.5 million.

Under the proposal, which has been accepted by most senior lenders and about half of second-lien holders, the company would continue to operate normally while under court supervision and eventually exit bankruptcy with $175 million in debt, according to court documents.

CTI sells frozen burgers, fajita meat and chicken parts to quick service and fast casual restaurants. Thomas H. Lee and Goldman ...