Franchise Group Debt-Slashing Bankruptcy Plan Mostly Approved

Franchise Group Inc. was largely granted approval of a complex bankruptcy plan to repay creditors, but the company’s former CEO prevailed in an objection to a component for funding a creditor litigation trust.

The brand manager can mostly proceed with a broad Chapter 11 plan that cuts $1.5 billion of debt and resolves sprawling legal disputes among the company’s lenders and unsecured creditors through a comprehensive settlement, Judge Laurie Selber Silverstein ruled Wednesday.

“It is uncontroverted that the global settlement was the product of good faith arms-length negotiations and has the support of all the major stakeholders,” she said during ...