Restaurant operator Prandium Inc. said Tuesday that it is delaying semiannual interest payments on certain debt securities and that it has hired a financial advisor mainly to help it in discussions with holders of those securities.
The Irvine operator of Koo Koo Roo, Hamburger Hamlet and Chi-Chi's restaurants said in a news release that the payments were due today and Thursday on four separate debt issues. It did not disclose the amount due or the total amount of indebtedness.
Prandium said it will take full advantage of grace periods allowed under the terms of the securities agreements to give its financial advisor, Crossroads LLC in Newport Beach, time to talk with debt holders to come up with an acceptable plan to restructure Prandium and its subsidiaries financially.
The company warned that it could not ensure that it will be able to resolve its capital structure. The grace periods end Feb. 15 for one set of debt securities and March 3 for another set.
The company's stock gained 1.5 cents to close at 13 cents a share in over-the-counter trading.