Restructuring on the menu at Abrakebabra
The directors of fast food business Abrakebabra expect the restructuring of the loss-making group's finances and rental agreements to be completed on terms acceptable to the group's bank and landlords.
Abrakebabra makes the forecasts in new accounts filed with the Companies Office which confirm that the business recorded a loss of €505,248 in 2013.
The firm had a shareholders' deficit of €9.3m at the end of 2013. A note attached to the accounts states that the net shareholders' deficit resulted from the impairment of fixed assets in 2011 due to the decline in the market value of properties.
A note states that "the directors have implemented a business plan to restructure the business with a view to returning the group to profitability. This has seen a significant reduction in operating costs of the group and the advancement of further funding by way of loans from the shareholders to assist the group meeting its obligations and to ensure its continuing viability".
The company's bank loans totalled €7.16m and the firm's Irish Bank Resolution Corporation (IBRC) loans were sold by IBRC special liquidators to Lone Star Funds in December 2013 and a note attached states that the directors expect that the restructuring of the group's finances and rental agreements will be completed on terms acceptable to the group, its bank and landlords.