That's what U.S. Bankruptcy Judge Arthur B. Briskman is being told by Scott Shuker, an Orlando lawyer representing Robert I. Earl, the British-born chairman, CEO and president of Planet Hollywood.
The company is trying to reorganize under Chapter 11 for the second time in two years. Although Planet Hollywood owes a total $131 million, Earl is adamant in trying to keep his $600,000-a-year salary even as he slashes his budget ($8 million from $16 million), cuts staff (30 from 60), dismisses executives and tries to run the corporation almost single-handedly, court testimony shows.
If Earl fails to turn the company around and Planet Hollywood is forced to liquidate its $121 million in assets, only secured creditors such as lenders would recover their total $85 million in loans, according to court filings. Unsecured creditors such as vendors, suppliers and independent contractors would receive nothing.
Earl is confident he can save the company and will ask the judge in December again to restore his full $600,000 salary.
Planet Hollywood first filed for Chapter 11 protection under the U.S. Bankruptcy Code in October 1999 and completed a court-approved reorganization plan in May 2000. That reorganization was short-lived, however. The company filed for protection again on Oct. 15 of this year.
Planet Hollywood is down to 10 company-owned restaurants and 25 franchised operations in Asia, Europe and the United States. The chain had 60 active restaurants in three countries in 1999. In metro Orlando, the company continues to operate at Downtown Disney and Universal Orlando.
The company's common is still listed at nine cents per share on the Over-the-Counter Bulletin Board. That price is unchanged from Nov. 19. There are 10 million shares outstanding. The company has a market capitalization of $900,000.
In the last 60 days, Planet Hollywood has closed six locations and vacated an estimated 180,000 sf in Washington, DC, Nashville, TN, San Diego, Atlanta, Baltimore and Seattle.
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