Red Lobster has declared its total liabilities at around USD 692 million (EUR 646 million) in the most recent filing in its Chapter 11 bankruptcy proceeding.
At a 21 June hearing, Red Lobster Management, Red Lobster Sourcing LLC, Red Lobster Restaurants LLC, and Red Lobster Hospitality LLC said USD 412 million (EUR 385 million) is owed to unsecured creditors.
The four companies’ total assets are USD 575.5 million (EUR 537 million), according to credit reporting firm Seafax.
On 14 July, U.S. Bankruptcy Court for the Middle District of Florida Judge Grace Robson gave Red Lobster access to USD 100 million (EUR 93 million) in debtor-in-possession (DIP) financing facility offered by Fortress. That amount will be used as a stalking horse bid at the auction, according to court documents.
Separately, wholesaler MSLT Seafood LLC, doing business as Lobster Trap Co. in Machiasport, Maine, U.S.A., filed a claim for USD 3,307.06 (EUR 3,086) against Red Lobster on 18 June.
Many other seafood companies are creditors in the case, including former Red Lobster owner Thai Union Group, which has not yet filed a claim, and Vernon, California, U.S.A.-based seafood wholesaler Red Chamber Co., which claims to be owed USD 7.6 million (EUR 7.1 million) for shrimp delivered to Red Lobster in 2023.
Invoices with service dates prior to Red Lobster’s bankruptcy filing on 20 May – specifically invoices with service dates between 1 May 2024 and 19 May 2024 – will be paid, while invoices with service dates prior to 1 May will require proof of claim filed via the bankruptcy court hearing the case, according to Red Lobster Supply Systems and Accounting Supervisor Kim Romero.
Red Lobster and the committee of unsecured creditors in the Chapter 11 filing are expected to reveal a proposed timeline for the remaining Chapter 11 debt claims to be heard on 10 July.
In a filing, Red Lobster said it “would like to pursue an expedited confirmation of a plan, including by scheduling a subsequent hearing on shortened notice after the filing of the debtors' plan.”
