Hooters to miss interest payment on $141 million debt
Hooters Hotel announced today it plans to miss an interest payment due Wednesday on its $141 million debt load.
The property has a 30-day grace period to make the payment.
It said it has hired financial advising firm Jefferies & Co. to "assist with the evaluation of the financial and strategic alternatives," a filing with the Securities and Exchange Commission shows.
Hooters Hotel, which did not indicate if it might make the payment during the grace period, said in the filing it has $8 million in cash for operations, and is generating free cash flow.
The property announced March 3 it had asked to borrow the remaining $1.8 million available under a $15 million credit facility.