Press Release June 2, 2020

Fortress Investment Group Acquires Krystal Restaurant Chain Out of Bankruptcy

Alston & Bird advised Fortress Investment Group on the distressed debt acquisition, credit bid, and ultimate purchase of the assets of restaurant chain The Krystal Company out of bankruptcy. 

Under the deal, Fortress acquired substantially all of Krystal’s assets, including about 300 corporate-owned and franchise locations. 

Advising Fortress in the acquisition was an Alston & Bird team led by partners Jonathan Edwards (Financial Restructuring & Reorganization) and Jordan Myers (Finance).   

“The transaction came together very quickly,” said Edwards. “In a matter of weeks, we worked with our client to purchase the debt of the prepetition lenders, structure a credit bid, negotiate an asset purchase agreement, and address a host of other issues in the bankruptcy case. As much as is possible in any bankruptcy scenario, we believe this was a ‘win-win’ transaction, with an attractive purchase price for our client, an exit for the prepetition lenders, significant value to the bankruptcy estate, and continued employment for the employees of this iconic restaurant chain.”  

Krystal filed for bankruptcy protection in the U.S. Bankruptcy Court for the Northern District of Georgia in January. The sale to affiliates of Fortress closed on May 18.
Media Contact
Nicholas Clarke
Senior Communications Manager
Phone: 212.210.1222

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