| HBS Case Collection
(Revised from original 2005 version)
Flagstar Companies, Inc. (Abridged)
A large restaurant chain undergoes a leveraged buyout and subsequent recapitalization. Financial and operating problems at the company force it to consider various restructuring options, including a prepackaged Chapter 11 exchange offer to its public bondholders. Two investment bankers hired by senior and junior creditors present competing company valuations to the bankruptcy court that differ by $700 million.
Keywords: Leveraged Buyouts;
Insolvency and Bankruptcy;
Financial Services Industry;