It then turned around and sued its lender—accusing Fortress Investment Group of maneuvering to take over the company by purchasing the chain’s loans on the secondary market and then threatening to force the chain into bankruptcy.The payoff, and the lawsuit, represented an extraordinary turn of events for a burger chain that has operated for much of the past year with the cloud of bankruptcy hanging over its head.Steak ‘n Shake, which has been struggling with weak sales and traffic in recent years, was believed to be nearing bankruptcy and was expected to seek out debt protection last week, in advance of a March due date of its loan. As of September, the company had $153 million due on that loan.
Source: Steak ‘n Shake Avoids Bankruptcy, Pays Off Loan, Sues Lender Fortress | ZeroHedge
