Article: Shoney's mulls life after debt. (Shoney's Inc.; includes related article)

For four years, debt has called the shots at Shoney's Inc., dictating the company's strategy and demanding a big piece of the action. But debt's grip is slipping, and as it does, the Nashville, Teen.-based company is looking to channel more resources to its restaurants.

In July 1988, Shoney's undertook a $728 million recapitalization that saddled the company with $585 million in bank debt. By all measures, the recapitalization has exceeded the company's goals: Shoney's stock price has more than tripled, and its total market value has nearly quadrupled, to more than $1 billion. To date, Shoney's is $175 million ahead of schedule in paying down its obligations, ...

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