Avado Sells 83 Restaurants

Nation’s Restaurant News:

Avado Brands Inc., a casual-dining operator that has been under Chapter 11 bankruptcy protection since September, said it has agreed to sell 83 of its 111 Don Pablo’s Mexican Restaurants and Hops Grillhouse and Brewery restaurants.

Terms were not disclosed for any of the 7 pending transactions. A court hearing to approve the deals is scheduled for Dec. 10.

67 of the restaurants and Avado’s headquarters here would be sold to an affiliate of the company’s primary bankruptcy lender, DDJ Capital Management LLC, according to a Monday filing with the U.S. Bankruptcy Court in Wilmington, Del. DDJ also agreed to purchase all property ‘used, useful or usable in the operation of the restaurants,’ including intellectual property, and all materials and work related to Avado’s Pablo’s Fajita Grill, a fast-casual concept under development…