US restaurant chain Friendly Ice Cream Corp. revealed yesterday [Monday] that it has failed to secure sufficient new financing to complete its refinancing plan.

The company’s pending tender offer for a portion of its senior notes has so far been under-subscribed, and officials stated that if the tender is not fully subscribed, the refinancing transactions will be terminated.

The effects of such a move on the company’s liquidity would mean that other financing alternatives would be sought, for example a restructure of its existing bank facility.