Farmington Hills, Michigan - 12 March, 1999 -

A&W Restaurants, Inc. (A&W), its equity partner, Grotech Capital, and Long John Silver's Restaurants, Inc. (LJS) announced a definitive agreement under which A&W and Grotech Capital will acquire LJS upon the consummation of a Plan of Reorganization for LJS in its Chapter 11 case. LJS said it will be filing a motion with the U.S. Bankruptcy Court for the District of Delaware seeking court approval of certain provisions of the definitive acquisition agreement, including bidding procedures for third parties and the payment of a "topping" fee. The Company expects that a hearing on the motion will be held at the end of March. LJS filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code on June 1, 1998, as part of a financial restructuring. In order for the acquisition by A&W to be consummated, LJS will need to obtain confirmation of a Plan of Reorganization. The Company is currently working with its creditors and other constituencies to develop such a plan and expects to file a plan in the late spring. A&W said each company will operate independently, and current LJS executives will continue to manage LJS' day-to-day operations. Sidney Feltenstein, Chairman, President and Chief Executive Officer of A&W Restaurants, said, "Long John Silver's will be an excellent addition to the A&W family. I believe its strong brand and product line have significant untapped consumer appeal, and the improvements made over the past two years to strengthen and improve operations show tremendous progress. I look forward to working closely with Long John's managers and franchisees to build on the results they've already achieved." Founded in 1919 in Lodi, CA and currently celebrating its 80th anniversary, A&W Restaurants features an All American menu of hamburgers, hot dogs, french fries, chicken sandwiches, A&W Draft Root Beer, and root beer floats. In 1995, A&W Restaurants was acquired by Sid Feltenstein and a group of investors. Since that time the company has added more than 550 units and currently operates nearly 1,000 units in 46 United States and 17 foreign countries. The company now is headquartered in Farmington Hills, MI, a Detroit suburb. Mr. Feltenstein is a former executive with Burger King and a resident of Miami. Long John Silver's is North America's leading quick-service seafood restaurant chain with more than 1,300 restaurants in 37 states, Thailand and Singapore. The company's corporate support center is in Lexington, KY.

This article has been read 995 times .