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Wells Fargo gives Pizza Inn breathing room on loan

November 30, 2005

THE COLONY, Texas — Wells Fargo, provider of a multimillion-dollar line of revolving credit to 400-unit Pizza Inn, is giving the struggling pizza chain some breathing room on its repayment terms.

According to a regulatory filing, Pizza Inn is in default of a loan agreement with Wells Fargo, which allows the bank to declare all outstanding principal, accrued and unpaid interest immediately due.

On Nov. 28, the bank said it will not exercise that option as long as the total principal of the loan does not exceed $3 million.

Read also Pizza Inn likely defaulted on loan from Wells Fargo and CEO's letter to shareholders reveals concerns at Pizza Inn.