NYC Chicken Chain Sticky’s Denied Bid to Modify Bankruptcy Plan

New York City-based fried chicken chain Sticky’s Finger Joint lost a bankruptcy court request to modify its restructuring plan by reducing payments to administrative creditors.

The restaurant operator, which won approval of a small business Chapter 11 plan last year, must pay administrative claims in full absent an agreement to impaired treatment by the affected priority creditors, Judge J. Kate Stickles said during a bench ruling Monday in the US Bankruptcy Court for the District of Delaware.

“The rationale for full payment of administrative expenses in Chapter 11 cases is applicable in the context of Subchapter V cases,” Stickles said. ...