A judge on Wednesday requested a report on the status of the sale of Tony Packo’s Inc., one day after would-be buyer Bob Bennett said the deal was dead.
Lucas County Common Pleas Judge Gene Zmuda ordered an attorney for the court-appointed receiver in the Tony Packo’s Inc. case to prepare a report by Jan. 12 determining whether a deal to sell the chain to TP Foods LLC can still be completed and, if not, what the consequences will be for the iconic Toledo restaurant.
RELATED STORY: Packo's deal collapses
At a morning hearing called after Judge Gene Zmuda learned that the deal to sell Packo’s to Mr. Bennett had been called off, the judge restated his opinion that the restaurant operations are “a going concern” that must be maintained. But Judge Zmuda said he could not proceed until he learns the status of the court-ordered sale of Packo’s to Mr. Bennett’s TP Foods company and ordered attorney Christopher Parker, who represents receiver Steven Skutch, to prepare a report on the status.
Mr. Bennett said he regarded the sale to be dead and that he believes the contract between the receiver and TP Foods has been breached. The Toledo businessman, who owns 26 Burger King restaurants, said that during the closing on Thursday, officials from Fifth Third Bank attempted to alter previously agreed upon terms of the deal, making it unacceptable. The bank holds a $2.6 million loan owed by Packo’s.
At the start of the hearing, Judge Zmuda noted the absence of Packo’s co-owner and chief financial officer Robin Horvath, and said he would not proceed with the case without Mr. Horvath present.
Mr. Horvath’s attorneys could not attend the hearing because of scheduling conflicts and advised their client not to attend without legal representation.
First Published January 4, 2012, 5:40 p.m.