Fortress Credit, one of the new owners of Orlando, Florida, U.S.A.-based restaurant chain Red Lobster, sued Thailand-based seafood conglomerate Thai Union for USD 65 million (EUR 63 million) late last year.
Though the lawsuit was recently confirmed to be moving forward, both parties have hinted they may be open to settling the case in the future.
Fortress originally filed the complaint against Thai Union late last year after Red Lobster exited its bankruptcy process, saying Thai Union had guaranteed payment to Red Lobster of up to USD 65 million in a 2022 financing agreement when the Southeast Asian firm was one of the minority owners of Red Lobster.
Thai Union’s board of directors agreed to provide the funding in August 2022 “to support and enhance [Red Lobster’s] liquidity management capabilities,” Thai Union said in its quarterly earnings report at the time.
“Red Lobster failed to make required payments. Red Lobster’s failure to pay triggered Thai Union’s obligations under the guarantee,” Fortress said.
However, Thai Union said that Fortress’s claim is moot because the financing agreement limited Thai Union’s obligations to a specific amount and for a specified time frame, the termination date of which already passed in 2023.
Nevertheless, in a Proposed Case Management Plan filed in the U.S. District Court for the Southern District of New York on 11 February, Fortress said that Thai Union still owes USD 65 million because certain clauses of its contract were not met.
One of the primary points of dispute …
