There's a new guy in charge at Nashville-based SouthEast Waffles LLC.
In a filing with the U.S. Bankruptcy Court today, creditors revealed that CEO Jim Shaub has agreed to the appointment of a "chief restructuring officer" who will manage the troubled Waffle House franchisee.
Shaub has been under fire from creditors, who claim his mismanagement and excessive compensation were to blame for financial difficulties that led the company to seek Chapter 11 protection last month.
The new restructuring officer is Gary Murphey, a corporate turnaround specialist with Resurgence Financial Services LLC, based in Atlanta. Murphey has taken on similar roles locally with Fuel Fitness Clubs in 2007 and the Kwik-Sak convenience store chain in 2005 as those firms went through bankruptcy.
Under the agreement filed with the court today, creditors FirstBank and SunTrust Bank will withdraw the requests they have submitted for the appointment of a trustee and examiner in the case. Murphey will have control over "all operational and financial matters" at the company, including "investigating any financial irregularities" that may have occurred there, according to the filing.
Murphey's assignment at the company will last four months or until a reorganization plan is enacted, whichever comes first.
Shaub retains the title of chief manager "but will have no authority over operations and financial matters," the agreement states. He is to receive a draw of $20,000 a month for the duration of the CRO's appointment and to be available for consultation.
The agreement specifies that the CRO has the authority, "in his sole discretion," to provide information about the company to any party to the case who asks for it.
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