<p>At least half a dozen bidders are expected to make a play for the remaining 43 Belle Foods stores and its employees during a closed auction.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> The Birmingham News reports that Associated Wholesale Grocers Inc. entered the auction as a “stalking horse” bidder – a bidder who has made an initial minimum bid of nearly $16.13 million and agreed to a set of conditions to ensure the offers from other potential bidders are at a level that Belle Foods’ primary creditor would find acceptable.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> C&S Wholesale Grocers, Belle Foods’ primary creditor, is a competitor to AWG in the wholesale grocery business. Belle Foods owes C&S $38.3 million for financing and goods and another $3 million in other claims. Belle Foods filed for Chapter 11 bankruptcy protection on July 1 with plans to reorganize what was at the time $28 million in debt with C&S entity Southern Family Markets - $4 million for a loan and a $24 million in a revolving line of credit. Belle Foods owed C&S $6 million - $5.1 in account payable and $900,000 on a pension withdrawal liability note. Belle Foods also reportedly had around $8 million in other accounts payable due.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> AWG’s plan calls for the closing of 13 of the 43 stores in the auction, while the remaining 30 stores will remain open by different operators. If the deal is successful, the Hoover and Tuscaloosa stores would be purchased by 4Wall LLC with the name “Bill White” beside it, but it is unclear if this is the same Bill White who founded, led, and filed bankruptcy as the chief executive of Belle Foods.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> An attorney for Belle Foods claims that the stalking horse deal aims to ensure the company gets the best possible price for the stores and keep as many of the stores as possible open, but Belle Foods continues to hope that bids will go above the stalking horse bid before the final deal is in place and approved by the U.S. Bankruptcy Court for the Northern District of Alabama at a hearing scheduled for September 27.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"> Stay tuned to AndNowUKnow as we follow continuing development on the sale of Belle Foods.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href="http://www.al.com/business/index.ssf/2013/09/belle_foods_bankruptcy_auction.html" target="_new"> The Birmingham News </a><hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href=" http://bellefoods.com" target="_new"> Belle Foods </a></p><hr class="legacyRuler"><hr class="invisible minimal-padding">
