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RMH Franchise Holdings – Objects to Proofs of Claim Filed by Applebee’s, Argues “Vastly Overstated” Claims Threaten to “Silence” Unsecured Creditors

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October 25, 2018 – RMH Franchise Holdings filed an objection [Docket No. 684] to proof of claim numbers 474, 477, and 486 filed by Dine Brands Global, Applebee’s Restaurants and Applebee’s Franchisor (collectively, “Applebee’s”), solely for purposes of voting on the First Amended Joint Plan of Reorganization. The Debtors assert, “After multiple mediation sessions, numerous settlement meetings, and months of discussions and negotiations among the Debtors, Applebee’s, the Plan Sponsor, the Agent, and the Committee, the Debtors filed the Plan, which they believe maximizes the value of their estates for the benefit of all creditors and other stakeholders. The Plan, if consummated, will maximize the value of the Debtors’ business as a going concern and ensure the continued operation of numerous profitable Applebee’s locations under skilled and experienced management, thereby preserving jobs and benefitting the Applebee’s brand as a whole. Further, as a condition to confirmation of the Plan, the Franchise Agreements will be assumed and Applebee’s undisputed Cure Costs will be paid in full. Accordingly, the Plan is a significant achievement, which ensures real, economic results for the Debtors’ various stakeholders, including Applebee’s, which could not otherwise be obtained. 

Applebee’s, the Debtors’ adversary in the litigation that has taken center stage for much of these Chapter 11 Cases, potentially stands in the way of the parties’ hard-fought, value maximizing compromise…the Applebee’s Claims assert vastly overstated damages, without support, based on conclusory factual assertions and legal theories, which the Debtors vehemently dispute, and which the Court, with respect to certain claims, has already rejected. If counted for voting purposes in their full asserted amounts, the Applebee’s Claims would potentially allow Applebee’s to silence the voices of the Debtors’ legitimate General Unsecured Creditors. Accordingly, the Debtors are filing this Objection, for the ultimate benefit of their estates and creditors, to ensure that Applebee’s votes in an amount that more closely reflects its economic interest in the Debtors’ estates vis-a-vis other creditors, considering, among other factors, the nature and relative merit of the Applebee’s Claims and the record of the Chapter 11 Cases.”

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The post RMH Franchise Holdings – Objects to Proofs of Claim Filed by Applebee’s, Argues “Vastly Overstated” Claims Threaten to “Silence” Unsecured Creditors appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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