Chez Gerard backers consider pre-pack
Banks consider their options to pay off debt
The company behind restaurants Chez Gerard and Caffe Uno could be about to
enter into a pre-pack administration, The Daily Telegraph reports.
Paramount Restaurants future is in the hands of its bank which is considering
a pre-pack administration, an insolvency arrangement which involves a
restructuring adviser which arranges for part of a debt to be paid off.
According to the Telegraph, the company suffered from huge interest costs
owing to the structure of its financiser, private equity backer, Silverfleet
Capital, through payment in kind (PIK) loan notes.
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Gerard could face pre-pack administration