The owners of the fast food chain also control O'Brien's and the Bagel Factory
Musgrave has taken over Abrakebabra assets - becoming a lender to the group along side other backers including Lone Star, and BlueBay Ireland.
The Irish Independent reports that the Cork based firm will be close to the top of the line when the Abrakebabra group repays debts.
The group also controls O'Brien's and the Bagel Factory - it bought the sandwich firm after it went into liquidation in 2009.
The report notes that accounts from Ronwell, a company connected to Abrakebabra, said that the group is completing a "comprehensive business and financial restructuring and reorganisation and has the support of financiers."
Accounts filled by Abrakebabra Ltd in 2013 showed that the business had recorded a loss of €505,248 in 2013.
It also reported that it had a shareholders’ deficit of €9.3m at the end of 2013.
BlueBay is a subsidiary of the Royal Bank of Canada - it is a €450m credit fund which makes funds available to Irish SMEs. It received €200m from the National Pension Reserve Fund.
The Musgrave retail group includes Supervalu and Centra - when contacted by Newstalk it declined to comment on these reports.