Big Table Group is looking to inject £3m of capital into the brand as well as restructure the leasehold business of the 44-strong Latin American restaurant brand.
The proposals could see a reduction or write-off of debts to landlords.
Speaking to Restaurant’s sister publication MCA, Big Table CEO Alan Morgan said that the court application was a proactive move aimed at safeguarding the future of the brand.
Some sites would close as part of the process, but Morgan said it was not likely to be many.
The company has responded to reports in The Sun that it was ‘at risk of closure’ having racked up ‘£37m of debt’, according to the paper, describing it as ‘sensationalist’.
A spokesperson for the company told MCA: “We are pleased that the Court has allowed us to proceed with the next steps of the proposed restructuring plan.
“It is disappointing that some of yesterday’s media coverage relied on unnecessary sensationalism and, in some cases, did not accurately reflect the details of the plan. Our focus remains firmly on supporting our teams and ensuring all of our sites continue to trade, which we fully expect to continue.”
The plan concerns only Las Iguanas Holdings, which holds the brand’s property leases, while the teams and suppliers are part of parent company Big Table Group.