Not only are the Debtors unable to cure defaults promptly, they have no ability or intention to do so ever. Rather, the success of the Plan is entirely dependent upon prevailing in their litigation against Applebee’s; if they do not like the outcome, the Plan purports to permit them simply to then reject the Franchise Agreements that they had assumed with the supposed promise of a prompt cure and future performance. And so Applebee’s suffers the double injury of receiving no recovery under the Plan for their cure obligations after being stuck in an involuntary franchise relationship with a recalcitrant, terminated and litigious franchisee, to the detriment of its national franchise network. For these and other reasons, the Plan is a complete travesty, and its confirmation would violate the Bankruptcy Code, be fundamentally unfair to Applebee’s and its franchisees, and undermine basic principles of franchise law.”
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The post RMH Franchise Holdings – Applebee’s Objects to “Complete Travesty” of Plan, Cites Foul Over Non-Payment of $14 million in Cure Costs appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.