Twin Hospitality Group Inc. (NYSE:TWIN) saw its shares fall sharply in premarket trading - tumbling 37.7% - after the company and parent FAT Brands Inc. initiated voluntary Chapter 11 proceedings on January 26, 2026. The cases were filed in the United States Bankruptcy Court for the Southern District of Texas, and the businesses will remain in operation as debtors-in-possession while the court supervises the restructuring process.
The Chapter 11 filings automatically produced defaults on approximately $407 million of outstanding liabilities. That total comprises around $403 million tied to secured notes issued by Twin Hospitality I, LLC, and about $4 million related to equipment financing arrangements with Amur Equipment Finance Inc.
Prior to the bankruptcy petitions, the company had disclosed receiving a notice of acceleration on November 17, 2025, concerning its secured notes under the Twin Indenture; that notice was reported in an SEC filing dated November 21, 2025. With the Chapter 11 petitions now filed, enforcement actions by creditors have been stayed.
Management has scheduled a hearing for January 28, 2026, to request emergency "first day" relief designed to support ongoing operations during the Chapter 11 process. The company has also created a dedicated website to centralize information about the cases, including court filings and guidance on how to participate in bankruptcy hearings.
Shareholders had seen pressure on the stock for months as the company’s financial situation deteriorated, and the formal bankruptcy announcement precipitated the dramatic premarket decline. The filings place the company and its subsidiaries into a court-supervised restructuring path while they attempt to address outstanding debt and maintain business continuity.
Context and next steps
- The filings make the companies debtors-in-possession, allowing continued operations under court oversight.
- Creditors’ ability to pursue enforcement is currently stayed as a result of the Chapter 11 petitions.
- A January 28, 2026 hearing will consider emergency measures intended to preserve operations during the restructuring.