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El Pollo Loco to post bond for appeal process
December 19, 2007
COSTA MESA, Calif. — El Pollo Loco Inc. has announced that its principal indirect shareholder, Trimaran Fund II LLC, has entered into agreements to issue a letter of credit on behalf of El Pollo Loco.
The letter of credit will be used to collateralize a portion of the bond required by El Pollo Loco to stay the final judgment by a U.S. District Court in Texas in the trademark dispute filed by El Pollo Loco S.A. de C.V. (El Pollo Loco-Mexico) while El Pollo Loco prosecutes its appeal of the judgment.
The letter of credit is one of two letters of credit that will be used to fully collateralize the bond required to stay the judgment while El Pollo Loco prosecutes its appeal. The second letter of credit, which collateralizes the remainder of the bond, was issued based solely upon El Pollo Loco's credit resources.
The bond for $24.3 million is equal to the amount of the judgment and estimated post judgment interest that will accrue during the appeals process, plus attorneys' fees.
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