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Morgan’s Foods, Inc.

Press Release Excerpt

We are pleased to announce that Brookwood Associates advised Morgan’s Foods, Inc. (“Morgan’s Foods”, OTCBB: MRFD) in the company’s recapitalization and sale/leaseback transaction with Fortress Investment Group (“Fortress”, NYSE: FIG). Morgan’s Foods is one of the largest and most respected operators within the Yum! Brands system, with 76 restaurants across six states primarily under the KFC brand.

The transaction required lengthy negotiations between the incumbent lenders, franchisor, and potential capital providers. Brookwood’s deep restaurant industry expertise and experience with recapitalizations allowed us to help our client navigate a complex situation and created significant equity value for shareholders. The end result was a restructured remodeling agreement with KFC Corporation, the retirement of high-coupon securitized debt, a new term loan, and the sale/leaseback of 29 restaurants to provide liquidity.

This transaction extends Brookwood’s track record in advising franchised restaurant companies, and the favorable outcome highlights our firm’s understanding of the intricacies of the franchisee/franchisor relationship.