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Statement on Karcher Labeled ‘Simply Wrong’ : Fast food: Lawyer for Carl’s Jr. founder says news release detailing plans to return to board should not have gone out.

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TIMES STAFF WRITER

A lawyer for Carl N. Karcher on Wednesday disavowed a press release from another Karcher spokesman that says the fast-food legend intends to re-establish himself in a “dominant” role at the Carl’s Jr. chain.

The release, distributed to several newspapers by Karcher public relations specialist Steven Fink, says that at least one Carl Karcher Enterprises board member will resign. It also indicates that an investor group helping Karcher restructure his troubled personal finances will gain three seats on the Karcher Enterprises board.

Fink did not return a telephone call seeking additional information but issued a two-paragraph “clarification” stating that “discussions with the board continue on a recomposition of the board of directors and future marketing strategies.”

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Karcher was not available for comment Wednesday. Andrew Puzder, his personal attorney, said that the press release “shouldn’t have gone out. It’s simply wrong.”

Puzder denied that Karcher has any knowledge of directors planning to resign and said the issue of board representation is a matter for the investor group--not Karcher--to negotiate.

Members of the group helping Karcher settle a potentially devastating personal debt said they never intended for Karcher to rejoin the company in a dominant role.

“We do envision some active role . . . possibly as chairman emeritus,” said Frank Willey, one of several investors who Tuesday agreed to help Karcher restructure a delinquent $26-million personal loan from Union Bank. “But we don’t have any agreement with the board” of Carl Karcher Enterprises.

Donald E. Doyle, president of Karcher Enterprises--who has drawn Karcher’s wrath in recent months--said Wednesday that any discussion of Karcher’s return to the company would be premature.

The deal, confirmed Wednesday, helps Karcher resolve his most serious financial problems while allowing him to keep a presence at the company he founded in 1941. A partnership led by William P. Foley II, chairman of Fidelity National Financial Inc. in Irvine, will gain control of 3.9 million Karcher Enterprises shares--about 22% of the company’s outstanding shares--that the founder used to secure the Union Bank loan.

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Karcher Enterprises’ shares jumped 50 cents a share to $9.625 in heavy Nasdaq trading.

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