Feds file criminal charges against ex-SouthEast Waffles boss

Shaub faces 14 counts of fraud, laundering
Feb 9, 2012 1:34 PM

Deal hashed out in SouthEast Waffles case

Ex-CEO unable to regain all of contested collateral. Also: Opryland attraction tumble leads to suit and Chapter 7 filings from dentist and fencing venture. [From our print edition featured in Monday's City Paper]
Nov 27, 2010 7:33 PM

Nashville at law: Doc sues pharmacies for revealing meds probe

Also: Rape victim threatened with lawsuit; bankrupt restaurateur sues ex-CFO [From our print edition featured in Monday's City Paper]
Apr 4, 2010 9:56 PM

SouthEast Waffles sues former CFO

No mention of ex-CEO Shaub in complaint over check kiting and other money issues
Apr 1, 2010 11:50 AM

Headline homes: Nashville's top sales, November 2009

A big buy from a Kings of Leon member leads the way this month. Also featured: The Belle Meade Boulevard manse of an embattled former CEO and a relocating record-label honcho's new place across from the Gores.
Dec 11, 2009 7:53 AM

SouthEast Waffles' legal bills top $700k

Law firm submits final invoice for work on often-contentious, 14-month bankruptcy process
Oct 20, 2009 9:50 AM

Shaub, Sullivan respond to SunTrust lawsuit

SouthEast Waffles CEO objects to 'immaterial, impertinent or scandalous' allegations and blames ex-CFO; she says she just carried out his orders
Aug 13, 2009 4:30 PM

Nashville at law: Rival managers bury the heavy metal hatchet

Motley Crue litigation ends, dueling Latino newspapers go to court, competing bid made for SouthEast Waffles, and more...
[From our print edition featured in Monday's City Paper]
Jul 26, 2009 1:29 PM

Will creditors waffle over which bid to choose?

When Waffle House Inc. earlier this month introduced its plan to take control of a restructured SouthEast Waffles Inc. and lead the Nashville-based restaurant operator out of Chapter 11 bankruptcy, its disclosure filing included one carefully worded paragraph, printed in all caps:
THE COMMITTEE, FIRSTBANK AND DEBTOR, AND THEIR RESPECTIVE PROFESSIONALS, HAVE PARTICIPATED ACTIVELY IN THE CASE, INCLUDING THE DRAFTING OF THE PLAN AND DISCLOSURE STATEMENT. THE COMMITTEE, FIRSTBANK AND THE DEBTOR’S CHIEF RESTRUCTURING OFFICER BELIEVES THAT THIS PLAN WILL RESULT IN A FAIR RETURN TO UNSECURED CREDITORS.
That's not quite a full-throated endorsement from secured creditor FirstBank and SEW's committee of unsecured creditors. It's legalese for "That's very nice, dear." Yesterday it emerged that FirstBank and the committee had reason to hedge their bets. An affiliate of Gaylord Sports Management, an Arizona firm privately owned by Gaylord Entertainment heir E.K. Gaylord II, has stepped in with what it says is a better offer for SEW's assets. Gaylord's venture includes golfer Phil Mickelson as an investor. Serving as CEO of the unit, GS Acquisitions LLC, is Terry Pefanis, former chief operating officer of Big Idea Inc., which created the VeggieTales kiddie entertainment franchise. In the reorganization plan it filed late yesterday, along with an accompanying disclosure statement, GS Acquisitions says it will pay a total of $20.2 million for the waffle seller's assets, with $4.8 million coming up front and the remainder paid out over time. Unsecured creditors would receive between 35 and 45 percent of their claims. In filing its own plan on July 6, Waffle House Inc., based in Norcross, Ga., offered to pay about $21.4 million for the assets over the course of ten years, with unsecured creditors due to get back between 25 and 38 percent of their claims. But its initial payment would be only $800,000, a sixth of what the Gaylord team is offering. The WHI plan and the GS Acquisitions plan include virtually identical provisions concerning the possible liability of longtime SouthEast Waffles CEO Jim Shaub and CFO Becky Sullivan for the losses that got the company into financial trouble in 2008. From the GS Acquisitions plan:
The Liquidation Agent, acting on behalf of Debtor's estate, may pursue Recovery Causes of Action against Lattimore, Black, Morgan and Cain, PC, and/or any of its current or former partners or shareholders in connection with auditing and other services provided to the Debtor, as well as professional and other obligations to the Debtor. The Liquidation Agent, acting on behalf of Debtor's estate, may also pursue Recovery Causes of Action related to payments to the Debtor's Chief Manager, Shaub, as well as the actions and management of the Debtor by Shaub and the Debtor's former Chief Financial Officer, Rebecca Sullivan, including without limitation any actions and omissions which had the effect of the Debtor, creditors, or other parties-in-interest suffering damages.
A hearing on the Gaylord plan is set for Aug. 11 in Nashville's U.S. Bankruptcy Court. Bill Norton of Bradley Arant Boult Cummings represents GS Acquisitions.
Jul 22, 2009 3:44 PM
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Waffle chain steps in to buy bankrupt franchisee

Potential resolution of SouthEast Waffles case would allow for future claims against insiders
Jul 6, 2009 10:27 PM