Flying Star’s owners have filed a reorganization plan in bankruptcy court that would allow them to retain control of the restaurant chain they built in exchange for surrendering their own claims against the company and putting up $1.5 million in new capital to pay off creditors, the Albuquerque (N.M.) Journal reported on Saturday. But their creditors are working on their own competing plan that would mean selling the restaurant chain to another local firm. Flying Star owners Jean and Mark Bernstein filed their reorganization plan in court on Friday. Under their plan, the Bernsteins would bid $1.5 million for new shares of stock in the company and continued management. The infusion would allow Flying Star to pay taxes and other priority claims immediately, pay other creditors, like lenders, in full on an installment basis, and pay the unsecured creditors a total of $790,101. That amounts to 21.5 percent of the unsecured creditors’ $3.67 million in claims, according to the filing. The attorney for Flying Star’s unsecured creditors committee said earlier on Friday — before the Bernsteins filed their plan — that he was working on a “competing plan” based on Southwest Brands’ indication that it wanted to buy Flying Star for $2.5 million.
