Case | HBS Case Collection | December 1998 (Revised May 1999)

Flagstar Companies, Inc.

by Stuart C. Gilson and Jeremy Cott

Abstract

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. A rewritten version of two earlier cases.

Keywords: Leveraged Buyouts; Restructuring; Capital; Insolvency and Bankruptcy; Debt Securities; Financial Services Industry; United States;

Citation:

Gilson, Stuart C., and Jeremy Cott. "Flagstar Companies, Inc." Harvard Business School Case 299-038, December 1998. (Revised May 1999.)