FAT Brands Sues Lenders to Unwind Hot Dog on a Stick Refinancing

The owner of restaurant chains Fatburger, Johnny Rockets, and Hot Dog on a Stick filed a federal lawsuit against lenders to try to unwind $20.6 million in debt and liens on its assets it incurred just ahead of its bankruptcy filing.

Lenders Gold Cap LLC and Insight Capital LLC were sued by FAT Brands Inc. over the refinancing deal that converted undersecured claims against the company into secured claims against a company subsidiary. The complaint was filed Thursday in the US Bankruptcy Court for the Southern District of Texas.

The deal, which happened less than a week before FAT Brands’ ...