fog cutter capital group inc (FCCG) Snapshot

American Industries Corp. settled a $5 million lawsuit with Andrew Wiederhorn over several unpaid loans. American Industries sued Wiederhorn and Fog Cutter Capital Group Inc. in March over several unpaid promissory notes. American Industries sued Wiederhorn and Fog Cutter Capital Group Inc. in March over several unpaid promissory notes. Wiederhorn is CEO of Southern California-based Fog Cutter, whose primary holding is the Fatburger fast food chain. Wiederhorn disputed the lawsuit and said he pledged collateral for the loans that exceeded the amount owed on the promissory notes. The lawsuit was filed shortly after Wiederhorn and Fog Cutter wrapped up a contentious bankruptcy in which unsecured creditors alleged he fraudulently transferred millions of dollars out of two bankrupt companies he controlled.

American Industries Inc. has sued Fog Cutter Capital Group Inc. and CEO Andrew Wiederhorn for more than $5 million over several unpaid loans. The new lawsuit comes as Wiederhorn and Fog Cutter wrap up a contentious bankruptcy in which unsecured creditors alleged he fraudulently transferred millions of dollars out of two bankrupt companies he controlled. In its lawsuit, American Industries says it loaned Fog Cutter, which was previously based in Portland, $3.6 million using three promissory notes in 2008. Each note had a 24% interest rate and matured within several months of execution. The lawsuit alleges that now Fog Cutter defaulted on each note and Wiederhorn subsequently entered and defaulted on a forbearance agreement and a loan workout agreement. It alleges that Fog Cutter now owes more than $5 million.