Hooters Restaurant Chain Taps Advisers to Address Debt as Revenue Falls.

BUSINESS networks; CHICKEN as food; PHYSICAL fitness centers; BOND ratings; DEBT relief; ASSET backed financing

Hooters of America is facing revenue declines and has closed several locations due to financial difficulties. The restaurant chain is seeking guidance from Accordion Partners and law firm Ropes & Gray on how to improve business and address its debt load. Some of Hooters' debtholders have sought advice from Houlihan Lokey Inc. Hooters' troubles are not unique, as other casual dining establishments have also faced challenges. The company has about $300 million in asset-backed bonds to repay, and its bonds have recently been downgraded. Hooters' bonds are structured as whole-business securitizations, which allow businesses to pay down the principal over time. Other companies in similar situations have either restructured or refinanced their debt. [Extracted from the article]

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