Florida-based restaurant chain Hawkers Asian Street Food, which has gained recognition from the Michelin Guide, has filed for Chapter 11 bankruptcy protection as it battles to retain control of its business. The company, which operates a location on Atlantic Avenue in Delray Beach, made the filing on September 16 in the U.S. Bankruptcy Court for the Middle District of Florida.
The decision to seek bankruptcy protection came after Hawkers received a default notice from its lender, ABC Funding LLC, a representative for Boston-based Summit Partners Subordinated Debt Fund IV-A LP. The restaurant chain, known for its vibrant take on Asian street food, turned to Scott Shuker, a business bankruptcy attorney with Orlando firm Shuker & Dorris PA, to help navigate the situation.
Battle to Retain Ownership
Despite making all required payments, Hawkers found itself at risk of losing control of its business due to loan terms that allowed the lender to take ownership under specific conditions. Shuker explained that the default occurred because of a clause tied to the company’s debt-to-net worth ratio. When this ratio hit a certain threshold, Summit Partners could move to seize control of the business.