Pappas Dining Empire Makes Bankruptcy Bid for On The Border (1)

Pappas Restaurants is preparing to acquire On The Border Mexican Grill & Cantina and help the Tex-Mex chain emerge from bankruptcy, according to people familiar with the matter.

The Texas-based parent of brands like Pappas Bros. Steakhouse, Pappas Bar-B-Q and Pappadeaux Seafood Kitchen has made a bid to take over On The Border as part of a sale in bankruptcy court, said the people, who asked not to be named discussing private bidding information.

A unit affiliated with Pappas Restaurants is listed in court documents as a lender of recent bridge and other financing to the bankrupt company. The filings ...