Item 4 BANKRUPTCY
On October 20, 2000, Elias,
Big Boy''s predecessor-in-interest, filed a petition under Chapter 11 of the
United States Bankruptcy Code (In re: Elias Brothers Restaurants. Inc.. U.S. Bankruptcy Court for the Eastern District of Michigan, Case No. 00-55831-R). Elias
continued to operate its business as a debtor�in-possession under the
Bankruptcy Court''s supervision. On December 8, 2000, the Bankruptcy Court
approved the sale of a substantial portion of Elias'' assets to Big Boy.
With the exception of Robert
G. Liggett, Jr., Mustafa Dakroub, Jennifer Bourgoin, William Hadden and David
Knitter, each person identified in Item 2 held substantially similar positions
with Elias at the time Elias filed its petition under Chapter 11 of the United
States Bankruptcy Code.
David Knitter, Big Boy''s Vice
President Franchise Development, was the Chairman of the Board of Directors of
Prism Restaurants II, Inc. On January 21, 2003, Prism Restaurants II, Inc.
filed a petition under Chapter 7 of the United States Bankruptcy Code fin
re: Prism Restaurants II. Inc.. U.S. Bankruptcy Court for the Eastern
District of Michigan, Case No. 03-40758JRN). This bankruptcy proceeding is
still pending.
Other than the action and
persons set forth above, no person previously identified in Item 1 or 2 of this
Franchise Disclosure Document has been involved as a debtor in proceedings
under the U.S. Bankruptcy Code required to be disclosed in this Item.
