Bennigan's owner in talks to avoid bankruptcy-WSJ

June 4 (Reuters) - John Kluge, the billionaire owner of several dining chains including Bennigan's, is in talks with major lender GE Capital Solutions to avoid a possible bankruptcy filing for his restaurant group, the Wall Street Journal said on Wednesday, citing three people familiar with the matter.

Metromedia Restaurant Group, a unit of Kluge's Metromedia Co, violated several terms of its lending agreement earlier this year, prompting GE Capital to declare a default and accelerate payments, the newspaper said, citing the people.

The Metromedia restaurant group has prepared a bankruptcy filing, but could still find a last-minute workout plan, the newspaper said, citing the people.

GE Capital is a unit of General Electric Co (GE.N).

Privately held Metromedia, which also owns casual-dining chains Ponderosa and Steak and Ale, did not answer calls for comment. GE Capital did not immediately return a call seeking comment.

Metromedia has hired California bankruptcy lawyer Jeff Reisner a few months ago, the Journal said, citing two people familiar with the matter. Reisner did not immediately return a call for comment.

The newspaper said Metromedia Restaurants' chief executive Clay Dover left abruptly last week, citing differences with ownership.

Casual dining chains have suffered because of the U.S. economic slowdown and rising fuel costs. (Reporting by Varsha Tickoo in Bangalore; editing by Sue Thomas)