wsj_0667.xml
WSJ891030-0030
WSJ891030-0030
=
891030
=
891030
891030-0030
.
891030-0030
.
Shoney
's
to
Report
@
Write-Off
in
Quarter
@
Totaling
$
2.5
Million
Shoney
's
to
Report
@
Write-Off
in
Quarter
@
Totaling
$
2.5
Million
10/30/89
10/30/89
10/30/89
WALL
STREET
JOURNAL
(
J
)
WALL
STREET
JOURNAL
(
J
)
SHN
SHN
NASHVILLE
,
Tenn.
NASHVILLE
,
Tenn.
Shoney
's
Inc.
said
it
will
report
a
write-off
of
$
2.5
million
,
or
seven
cents
a
share
,
for
its
fourth
quarter
ended
yesterday
.
The
restaurant
operator
cited
transaction
costs
from
its
1988
recapitalization
as
a
result
of
a
$
160
million
restructuring
of
its
bank
debt
.
The
write-off
will
be
reported
as
an
extraordinary
item
in
the
company
's
1989
operating
results
.
In
addition
,
the
effective
interest
rate
on
the
$
410
million
of
total
remaining
bank
debt
after
the
restructuring
is
10.66
%
.
The
combined
effect
of
these
changes
is
expected
to
save
the
company
about
$
4
million
in
interest
expenses
next
year
,
or
six
cents
a
share
.
Shoney
's
said
the
latest
restructuring
affected
bank
indebtedness
that
was
incurred
to
finance
$
585
million
of
the
company
's
$
728
million
recapitalization
that
took
place
in
The
company
has
made
payments
of
$
175
million
against
the
original
$
585
million
of
bank
debt
incurred
in
connection
with
the
recapitalization
.
These
payments
consisted
of
$
54
million
in
scheduled
payments
and
$
121
million
in
prepayments
,
funded
by
$
82.8
million
from
operating
cash
flow
,
zero-coupon
subordinated
debt
and
assets
sales
.