BK receivers say debt, Covid-19 were significant blows
Burger King remains a ‘‘tricky’’ prospect for potential investors during the global economic downturn, says economic analyst Brad Olsen.
The restaurant chain is being sold as a going concern after its franchise owners were put into receivership on April 14.
The first receivers report into the business failure said Burger King’s owners faced financial pressures due to its high secured debt, combined with the impact of the Covid-19 pandemic.
Receiver Brendon Gibson, from KordaMentha, said the ultimate shareholder behind the chain in New Zealand was unwilling to provide additional funding and, as a result, the secured debt holder called in receivers.
As of March 31, Burger King owed about $50 million to banks, the report said. ANZ Bank had a registered financing statement against the companies, it said.
Gibson previously said the lenders were a consortium of ANZ, ASB and Rabobank.
Burger King’s parent shareholding companies Tango Finance Ltd, Tango New Zealand Ltd and Antares New Zealand Holdings Ltd were placed in receivership while Burger King’s operator, Antares Restaurant Group, was not.
The only realisable assets of the company were shares in Antares Restaurant Group owned by Antares New Zealand Holdings, the report said.
In 2011, Antares was bought by
United States private equity firm Blackstone Group, which manages over US$500 billion of assets.
The report showed Antares New Zealand Holdings received more than $104m from Tango New Zealand, while Antares Restaurant Group received $46m from Antares New Zealand Holdings.
Parent company Tango Finance had pumped $82m into Tango New Zealand.
Burger King’s receivers were currently assessing unsecured creditors’ claims.