03:18 PM EDT, 08/22/2024 (MT Newswires) -- B. Riley Financial-backed (RILY) Franchise Group won a short reprieve from lenders to come up with a restructuring proposal for $1.5 billion in debt, Bloomberg reported Thursday, citing people familiar with the matter.

The firm has until mid-September to propose a business plan and debt restructuring after first-lien lenders agreed to waive some covenants while tightening others related to lender protections, the report said.

The amendment requires the creation of a special committee that would include two independent directors to negotiate the restructuring with the ultimate goal being an out-of-court resolution, the report said.

Franchise Group didn't respond to requests for comment, and B. Riley declined to comment, Bloomberg said.

B. Riley and Franchise Group didn't immediately respond to requests for comment from MT Newswires.

Shares of B. Riley fell 22% in recent trading Thursday.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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