Restaurant Chain Wins Bankruptcy Feud With Dining Credit Firm

The operator of Italian restaurant chains Bravo Italian Kitchen and Brio Italian Grille won approval to reorganize in bankruptcy, beating an alternative restaurant financier’s claims that the company owed $12 million worth of dining credit.

Bravo Brio Restaurants LLC creditor InKind Cards Inc. isn’t entitled to any Chapter 11 recovery under the terms of its $3.5 million financing agreement, Judge Lori V. Vaughan of the US Bankruptcy Court for the Middle District of Florida ruled Tuesday.

Under the agreement, InKind purchased dining credit at a discount and resold it to end customers.

The chain operator has already honored $7 million ...