Sun Capital Partners Inc. got the nod Thursday from a judge to pilot its Friendly Ice Cream Corp. out of bankruptcy on a course that will resolve many of the restaurant chain’s financial troubles.
The private-equity firm owned Friendly’s when it filed for Chapter 11 protection in October. It was also a lender to the company and will hold on to ownership in exchange for erasing a $75 million loan.
Judge Kevin Gross said Thursday he would approve the “credit bid” sale of Friendly back to Sun in a deal that offers something to suppliers and other trade partners.