JACKSONVILLE, Fla., April 15, 2013 /PRNewswire/ -- American Restaurant Concepts, Inc. (ANPZ), the operator and franchisor of America's award-winning Dick's Wings® restaurants, announced today that it has entered into a settlement and release agreement with respect to its outstanding debt obligation to Bank of America.
Under the terms of the agreement, the Company paid Bank of America $50,000 in full and final settlement of all outstanding principal, accrued but unpaid interest, and all other claims and amounts owed to Bank of America under the loan agreement originally entered into by the parties on October 30, 2008. The Company owed approximately $370,000 to Bank of America as of the date of the settlement agreement.
The settlement of this debt resulted in a 68% reduction in the Company's outstanding debt obligations and an 86% reduction in the amount of annual interest expense incurred by the Company on an annual basis. American Restaurant Concepts will recognize a one-time gain of approximately $320,000 during its fiscal quarter ended March 31, 2013 in connection with the settlement.
"This is a big step forward for American Restaurant Concepts," said Michael Rosenberger, Chief Executive Officer of American Restaurant Concepts. "We were incurring $36,000 a year in interest under this debt. The significant reduction of our debt will greatly improve our cash flow to better support our day-to-day operations. It will also strengthen our financial position and contribute directly to net earnings through lower interest expenses beginning in our second fiscal quarter of this year."
Mr. Rosenberger continued, "As we have highlighted in prior communications, increased sales and fiscal discipline are two main areas of focus for the Company during 2013. Our ability to effectively reduce our debt position further underscores our commitment to significantly improving our opportunities for success in the future."
About American Restaurant Concepts, Inc.
American Restaurant Concepts, Inc., headquartered in Jacksonville, Florida, is the owner, operator and franchisor of the Dick's Wings & Grill® full-service restaurants and Dick's Wing Express® quick-service restaurants. The company prides itself on the 365 original mouth-watering flavors it has created for its premium grade chicken wings. Dick's Wings offers customers the freshest wings, sandwiches, burgers, wraps, salads and signature waffle fries, all in a unique setting that combines a family-friendly environment with a sports-themed restaurant. Dick's Wings chicken wings have won numerous awards in Florida and Georgia, including having been voted "Best Chicken Wings in Northeast Florida" 12 consecutive years by Folioweekly magazine. Dick's Wings currently has 14 full-service restaurants and 2 express restaurants. Fifteen of the restaurants are located in Florida and one is located in Georgia. For more information on the Dick's Wings and Grill, please visit its website at www.BestWingsEver.com.
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SOURCE American Restaurant Concepts, Inc.