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SEC Filings

COSI INC filed this Form 8-K on 02/13/2017
Entire Document

Fast Casual acknowledges and agrees that Cosi shall be deemed to be in full compliance with its obligations under the FC MFA and waives and releases any claim that Cosi has breached any of its prior obligations under the FC MFA;

The Franchisee Parties and Cosi mutually release each other of and from any and all claims or causes of action against each other through the date of the Settlement Agreement, excepting only their respective obligations under the Settlement Agreement, their prospective obligations under the FC MFA, and their prospective obligations set forth in the Owner and Personal Acknowledgments and the Guarantee, which remain in full force and effect; and

Fast Casual consents to the assumption of the Settlement Agreement (and assignment if applicable) by reorganized Cosi and its affiliates as of the effective date of Cosi’s Chapter 11 plan.

Reasonableness of the Settlement Agreement

23.           Under Bankruptcy Rule 9019, a bankruptcy court can approve a compromise or settlement if it is in the best interest of the debtor’s estate.  See, e.g., Jeffrey v. Desmond, 70 F.3d 183, 185 (1st Cir. 1995).  In evaluating a settlement, a bankruptcy court should “assess and balance the value of the claim that is being compromised against the value to the Estate of the acceptance of the compromise proposal.”  See id. (quoting In re GHR Cos., 50 B.R. 925, 931 (Bankr. D. Mass. 1985)) (additional citation omitted).

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