FL MORRIS / FMORRIS@STARBULLETIN.COM The Hawaii KFC restaurants franchisee could get approval to buy local Burger King outlets Tuesday.

Hawaii Burger Kings
may sell next week

---

By Russ Lynch
rlynch@starbulletin.com

A deal to sell 16 Burger King outlets in Hawaii to the mainland holder of the Hawaii franchise for KFC restaurants could be finalized Tuesday, according to an attorney for Burger King franchisee Cimm's Inc.

Margaret M. Mann of San Diego, who represents Cimm's in its bankruptcy reorganization, said the U.S. bankruptcy court in Los Angeles is expected to make a decision Tuesday on an agreement to sell the Hawaii Burger Kings to Kazi Foods, Inc.

Headed by Zubair M. Kazi and headquartered in Studio City, Calif., the company is the second-largest U.S. franchisee for KFC, operating 159 restaurants including 27 KFC units in Hawaii.

Kazi initially offered to pay $2.6 million for the Hawaii Burger Kings. Attorney Mann said the pricing for the 16 units now in the deal is complicated by Kazi's assumption of some Cimm's debt but will be "several million dollars."

The Waikiki Burger King at 2186 Kalakaua Ave. is not included in the deal. Neither are several others in the islands.

Cimm's, which bought the Hawaii Burger King operations in 1995 from a Japanese owner, filed for protection in July under Chapter 11 of the bankruptcy law, which puts debts on hold while a company reorganizes. The filing said Cimm's had annual sales of $100 million but secured debts of $75 million and unsecured debts of more than $20 million.

Cimm's has about 130 Burger King outlets across the country and wants to keep operating most of them.