Food franchisor seeks bankruptcy protection

If that application is approved, Afton said it will file a subsequent application to have its creditor protection transferred to a Companies’ Creditors Arrangement Act filing. In May, Afton reported that it had nearly $34 million in current liabilities. The current portion of its long-term debt totalled more than $26 million.

The Toronto Star
July 13, 2004

Food franchisor seeks bankruptcy protection

Afton Food Group Ltd., a fast-food franchisor that includes the 241 Pizza and Robin’s Donuts brands, is seeking bankruptcy protection, a few days after its lenders issued a default notice seeking $19.5 million from the company.

Burlington-based Afton said yesterday it is unable to repay the balance of the secured loans outstanding and is in process of applying for protection under the federal Bankruptcy and Insolvency Act as a response to the notice of default, which was issued to the company last Friday.

If that application is approved, Afton said it will file a subsequent application to have its creditor protection transferred to a Companies’ Creditors Arrangement Act filing.

In May, Afton reported that it had nearly $34 million in current liabilities. The current portion of its long-term debt totalled more than $26 million.


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