{"url_path":"/sec/fatpq/8-k/2026-06-04/item-7-01","section_key":"item-7-01","section_title":"Item 7.01 Regulation FD Disclosure.**","topic":"sec","document":{"doc_type":"8-K","doc_date":"2026-06-04","source_url":"https://www.sec.gov/Archives/edgar/data/1705012/0001493152-26-027218-index.html","accession_number":"0001493152-26-027218","cik":"0001705012","ticker":"FATAQ","issuer_name":"Fat Brands, Inc","edgar_url":"https://www.sec.gov/Archives/edgar/data/1705012/0001493152-26-027218-index.html","primary_entity_key":"0001705012","primary_entity_name":"Fat Brands, Inc"},"word_count":805,"has_tables":true,"body_markdown":"**Item\n7.01 Regulation FD Disclosure.**\n\n** **\n\nOn\nJanuary 28, 2026, upon the request of the Corporation and the ad hoc group (the “**WBS Ad Hoc Group**”) of certain holders\nof notes issued by the special purpose, whole business securitization financing subsidiaries of the Corporation, the Bankruptcy Court\nentered the *Stipulated Mediation Order Appointing Judge Marvin Isgur as Mediator* [Docket No. 105] (as amended, supplemented or\nmodified from time to time, the “**Mediation Order**”). The Mediation Order facilitated the Corporation’s ability\nto engage in discussions with the WBS Ad Hoc Group and the official committee of unsecured creditors (the “**Committee**”\nand, together with the WBS Ad Hoc Group and the Corporation, the “**Mediation Parties**”) regarding a value-maximizing\nresolution of the Chapter 11 Cases. As of June 1, 2026, the mediation has concluded. Pursuant to paragraph 14 of the Mediation Order,\nthe Corporation agreed to publicly disclose certain information set forth herein upon the termination of the mediation. This disclosure\nsatisfies the Corporation’s obligations under the Mediation Order.\n\n \n\nThe\nmediation process resulted in a global settlement (the “**Global Settlement**”) among the Corporation and certain of its\nsubsidiaries (collectively, the “**Companies**”), the WBS Ad Hoc Group, 3|5|2 Capital GP LLC, on behalf of 3|5|2 Capital\nABS Master Fund LP (the “**Resid Noteholders**”), and the Committee. On May 19, 2026, the Bankruptcy Court entered an\norder approving the Global Settlement [Docket No. 1365] (the “**Settlement Order**”) and the *Final Order (I) Authorizing\nthe Debtors to Use Cash Collateral and Obtain Secured Postpetition Financing; (II) Granting Liens and Superpriority Administrative Claims;\n(III) Providing Adequate Protection; and (IV) Granting Related Relief* [Docket No. 1366] (the “**Final DIP Order**”).\n\n \n\nThe\nGlobal Settlement, among other things: (i) resolves the objections filed by the Committee and the Resid Noteholders to the sale of substantially\nall of the assets of the Companies and to entry of the Final DIP Order, allowing the Companies to consummate four separate sale transactions;\n(ii) provides for the WBS Ad Hoc Group to acquire substantially all of the assets of the Companies through credit bid transactions, along\nwith certain alternative sale transactions for specified assets to be sold to other third-party buyers, including Hot Dog on a Stick\nand Elevation Burger; (iii) establishes a binding milestone timeline requiring the Companies to file and seek confirmation of a Chapter\n11 plan that will effectuate the wind-down of the remaining estates of the Companies and distribute interests in a liquidation trust\nto certain creditors on account of their claims against the Corporation; (iv) provides for certain funding to be contributed by the Ad\nHoc Group in connection with the chapter 11 plan confirmation process; and (v) requires the dismissal of certain pending litigation,\nincluding the adversary proceeding commenced by the Resid Noteholders and the Committee’s standing motion and manager advance complaint,\nfollowing the closing of the credit bid transactions.\n\n \n\nOn\nMay 22, 2026, the Companies filed a plan of liquidation [Docket No. 1404] and a disclosure statement [Docket No. 1406], each as may be\namended or supplemented from time to time, incorporating the terms of the Global Settlement.\n\n \n\nThe\ninformation included in this Current Report under Item 7.01 and Exhibit 99.1 and 99.2 attached hereto is being furnished and shall not\nbe deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “**Exchange Act**”),\nor otherwise subject to liabilities of that Section, nor shall it be deemed incorporated by reference into any filing under the Exchange\nAct or the Securities Act of 1933, as amended, regardless of any general incorporation language in such filings.\n\n \n\n \n\n \n\n \n\nForward-Looking\nStatements\n\n** **\n\nThis\nCurrent Report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including\nstatements relating to the Global Settlement, the proposed sale transactions, the filing and confirmation of a Chapter 11 plan, the wind-down\nof the Corporation’s remaining estates, and anticipated distributions to creditors. Forward-looking statements are subject to significant\nbusiness, economic and competitive risks, uncertainties and contingencies, many of which are difficult to predict and beyond our control,\nwhich could cause our actual results to differ materially from the results expressed or implied in such forward-looking statements. We\nrefer you to the documents that we file from time to time with the Securities and Exchange Commission, such as our reports on Form 10-K,\nForm 10-Q and Form 8-K, for a discussion of these and other risks and uncertainties that could cause our actual results to differ materially\nfrom our current expectations and from the forward-looking statements contained in this Current Report. Except as required under the\nUnited States federal securities laws and the rules and regulations of the SEC, the Corporation disclaims any intent or obligation to\nupdate any forward-looking statements after the date of this Current Report, whether as a result of new information, future events, developments,\nchanges in assumptions or otherwise."}