Burger King Transition Plan With AmeriServe Approved by Bankruptcy Court.Business Editors MIAMI--(BUSINESS WIRE)--May 10, 2000 Burger King Corporation, Restaurant Services, Inc. ("RSI (Repetitive Strain Injury) Ailments of the hands, neck, back and eyes due to computer use. The remedy for RSI is frequent breaks which should include stretching or yoga postures. ") and AmeriServe Food Distribution, Inc. ("AmeriServe") have reached agreement finalizing the details of the transition of distribution services for the approximately 5900 Burger King restaurants currently served by AmeriServe. This agreement, which was approved by the bankruptcy court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. on May 9, 2000, calls for an orderly transition to new distributors to be completed by July 17, 2000. In connection with the transition plan, Burger King Corporation and Tricon Global Restaurants, Inc. ("Tricon") reached a joint agreement regarding the $150 million Debtor-in-Possession credit facility provided to AmeriServe by Burger King Corporation and Tricon following AmeriServe's Chapter 11 bankruptcy filing on January 31, 2000. Under the terms of this agreement, Burger King Corporation will assign the funded portion of its $50 million share of the Debtor-in-Possession revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility ("DIP Financing") to Tricon. Burger King Corporation will also buy-out buy·out also buy-out n. 1. The purchase of the entire holdings or interests of an owner or investor. 2. The purchase of a company or business: the unfunded portion from Tricon. In exchange, Tricon will assume substantially all of Burger King Corporation's obligations to AmeriServe under the DIP Financing and to the secured creditors One who holds some special monetary assurance of payment of a debt owed to him or her, such as a mortgage, collateral, or lien. under the cash collateral orders. After such assignment, Burger King Corporation will no longer have any funding obligations under the Debtor-in-Possession credit facility. Burger King Corporation will continue to purchase qualified inventory directly from suppliers until the transition is complete. AmeriServe's $150 million in Debtor-in-Possession financing Debtor-in-possession financing New debt obtained by a firm during the Chapter 11 bankruptcy process, Federal Bankruptcy Rule 4001 (c)(1). This financing is unique because it is secured, that is, it has priority over existing debt, equity and other claims. from Tricon will remain in effect until its maturity date. Burger King Corporation and its franchisees operate more than 10,900 restaurants in all 50 states and 58 countries and international territories around the world, with more than 92% of BURGER KING(R) restaurants owned and operated by independent franchisees. Since the company's founding in Miami in 1954, the BURGER KING(R) brand has become recognized for great flame-broiled taste and HAVE IT YOUR WAY(R) food customization. In fiscal year 1999, the BURGER KING(R) system has system-wide sales of $10.9 billion. Burger King Corporation is a part of Diageo (NYSE NYSE See: New York Stock Exchange :DEO DEO Deodorant DEO Diversification de l'Economie de l'Ouest Canada (Western Economic Diversification Canada) DEO Diversification de l'Économie de l'Ouest Canada (Western Economic Diversification Canada) ), the international food and drinks company, that includes such brands as Pillsbury, Haagen Dazs, and Guinness. To learn more about the BURGER KING(R) system, please visit the company's website at www.burgerking.com. |
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