FAT Brands Lenders Delay Push to Oust CEO After Stock Sale

The chief executive of bankrupt restaurant operator FAT Brands Inc. can keep his job — for now.

Lenders to the company agreed to drop their demand that Andrew Wiederhorn be suspended without pay after he directed the company to sell stock in FAT Brands’ Twin Peaks dining chain. Instead, the creditors, who hold nearly $1 billion of the company’s notes, will wait until next month to press for the appointment of a court-approved trustee to oversee FAT Brands.

If managers make any other decisions that violate Chapter 11 rules, “We will be here with our hair on fire,” lender attorney ...