Earlier this December, five related companies which operate 92 Burger King franchises in Minnesota, Missouri, Illinois, Wisconsin, Iowa and Kansas voluntarily filed for chapter 11 bankruptcy protection in Minnesota. The companies - Duke & King Acquisition Corp.; Duke and King Missouri, LLC; Duke and King Missouri Holdings, Inc.; Duke and King Real Estate, LLC; and DK Florida Holdings, Inc. - have seen same-store sales drop 4% in the first eleven months of 2010 versus 2009 and generated $81.7 million in revenues in the 44-week period ended November 4, 2010 ($5.4 million below projections). The companies were also sued in 2010 by Burger King Corporation for breach of obligations under their franchise agreements. That litigation was settled pursuant to an agreement that requires the sale of 52 of the companies' locations by December 30, 2010. If the sale is not completed by that date, the companies' rights under their Burger King franchise agreements would terminate with respect to those 52 locations. The companies' primary secured financing is provided by Bank of America and the outstanding obligations were approximately $11 million as of December 1, 2010.
Key court filings to date are listed in the attached document. For access to all major pleadings filed in this case, please visit http://www.chapter11cases.com/Duke-and-King-Acquisition-Corpdba-92-Burger-King-Franchises_c_10997.html
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