Sectors
Foley & Lardner LLP announced today that the United States Bankruptcy Court for the Northern District of Texas has confirmed a consensual liquidating plan in the Chapter 11 bankruptcy cases of TGI Friday’s and its affiliates. Foley served as co-counsel to the Company alongside Ropes & Gray LLP, successfully guiding the restaurant chain’s Chapter 11 cases to a resolution supported by all major creditor groups.
TGI Friday’s sought Chapter 11 protection in November 2024 amid liquidity constraints and operational challenges—Foley’s representation of the Company began at that time. The bankruptcy proceedings involved a court-approved sale process for substantially all of the Company’s assets, extensive negotiations with key creditor constituencies, resolution of significant claims asserted against the Company, and related litigation. Foley advised the Company alongside Ropes & Gray as co-counsel, with Berkeley Research Group serving as financial advisor.
As the cases progressed and following the Company’s successful sale of substantially all operating assets through the court-approved sale process, Foley took a leading role in negotiating and formulating the Chapter 11 plan and disclosure statement and worked extensively with counsel for the Official Committee of Unsecured Creditors and other key stakeholders to achieve a fully consensual resolution. This consensus avoided confirmation litigation and secured broad creditor support for the Company’s Chapter 11 plan of liquidation. The plan was confirmed following months of negotiations with the various case constituents to resolve formal and informal objections and other issues related to the plan.
The Chapter 11 process preserved the TGI Friday’s brand by facilitating the sale of substantially all operating assets to new owners and operators, supported the continued employment of hundreds of employees, and ensured the ongoing operation of restaurants under new ownership. The confirmed plan also established an orderly framework for winding down the Company’s prior operations and liquidating and distributing the estate’s remaining assets to creditors through a post-confirmation trust.
The Foley team was led by partner Holland O’Neil, with significant contributions from senior counsel Stephen Jones and associate Zach Zahn. Carrie Hoffman, a member of Foley’s Labor & Employment Practice, also worked with the firm’s restructuring team to resolve related employment litigation during the proceedings.
