BurgerFi Navigates Financial Challenges with Strategic Restructuring

BurgerFi International (BFI) has shared an update.

BurgerFi International and its subsidiary, Plastic Tripod, secured a forbearance agreement on May 30, 2024, with their lender, modifying their existing Credit Agreement. This agreement postpones the lender’s right to act upon defaults until July 31, 2024, provided no triggering events occur earlier. Additionally, the Borrowers can access $2 million from their credit line if they secure an equal subordinated loan. The agreement also raises the loan interest rate to 12.5% and imposes transaction milestones for the Company’s sale. Concurrently, David Heidecorn was appointed Chairman of the Board, and Kroll Securities, LLC was engaged to explore strategic alternatives for the Company.

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