Delaney’s Restaurants and its owner have filed...

Delaney’s Restaurants and its owner have filed for protection from creditors in U.S. Bankruptcy Court, Michael Kinney, a Newport Beach attorney, said Friday. The bankruptcies were filed in Santa Ana on Monday, the day before the Anaheim-based seafood chain announced that it has agreed to be acquired by an unnamed corporation for an undisclosed sum. According to Kinney, the bankruptcies were filed to allow the sale to be completed. He said the Delaney’s chain--which has eight restaurants in Orange County--is behind in rent payments. By filing for bankruptcy protection, Delaney’s can preserve its assets and prevent creditors from trying to foreclose on the restaurants. In its corporate filing under Chapter 11 of federal bankruptcy law, Delaney’s Restaurants listed assets of $7.6 million and liabilities of $4.5 million. The chain’s owner, Francis M. Delaney, also filed for personal bankruptcy, listing assets of about $4.2 million and liabilities of $5.1 million, Kinney said.