Prandium units seek protection as restructuring stays elusive.

IN a sign of further financial heartburn for Irvine-based Prandium Inc., the restaurant holding company's two largest chains, Chi-Chi's Inc. and Koo Koo Rod Inc., filed for Chapter 11 bankruptcy protection last week.

Chi-Chi's, with 128 sit-down restaurants concentrated in the Midwest, and Koo Koo Rod, the 29-unit California fast food chicken concept, filed in U.S. Bankruptcy Court in Wilmington, Del., where Prandium is incorporated.

Twelve Chi-Chi's affiliates, mostly based in Maryland and West Virginia, also filed bankruptcy papers. Chi-Chi's listed debts of $205 million and Koo Koo Rod listed debts between $1 million and $10 million.

Anthony G. Baril, Prandium's controller and member of its senior finance committee, declined comment.

A spokeswoman for Prandium's largest creditor, Wells Fargo Foothill Inc.--a subsidiary of Wells Fargo & Co.--declined comment on the bankruptcy filings. On July 24, Wells Fargo Foothill agreed to delay Prandium's loan deadlines and allowed it to borrow upwards of $5 million in working capital.

Prandium, which also owns the 14-unit Hamburger Hamlet Inc. chain, emerged from a Chapter 11 bankruptcy of its own in July 2002. Since then, the company has struggled to sell off assets--a key provision of its reorganization plan.

In August, a deal fell through to sell Prandium to an investor group that included Beverly Hills-based 180 Degree Group and Triyar Companies LLC for $6.4 million in cash and assumption of $57.9 million in long-term debt.

Shortly after that came the resignation of Prandium's chief financial officer, Michael Trebing, a 23-year company veteran. Since emerging from bankruptcy, Prandium has been run by executives from New York-based turn-around firm Alvarez & Marsal Inc. Executives from the firm couldn't be reached for comment.