Fog Cutter Capital Group Inc., parent company of Fatburger and Buffalo's Cafe, has settled a $5.1 million lawsuit filed by its lender, American Industries Inc. in March 2012.
Under the terms of the settlement agreement, Fog Cutter will pay American Industries Inc. between $1.2 million and $1.8 million over as many as three years in full satisfaction of its debt.
Fog Cutter had previously disputed the remaining amount due under the loan, pending the resolution of a disagreement regarding the value of certain collateral that had been conveyed to American Industries Inc. Under the agreement, the parties provided mutual releases of liability and American Industries Inc. agreed to dismiss the lawsuit, with prejudice.
"The Court System is never an efficient venue to resolve business disputes. I am very pleased that we were all able to quickly settle this matter," said Andrew Wiederhorn, Fog Cutter's chairman and CEO.
In late 2003, Fog Cutter invested in the franchisor of the Fatburger restaurant chain and has made that its major focus in recent years. In November 2011, Fog Cutter acquired control of Buffalo's Franchise Concepts Inc.
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