On Friday, a Delaware bankruptcy judge approved Fresh & Easy Neighborhood Market Inc.’s Chapter 11 disclosure statement, allowing the estate of the supermarket chain to advance a liquidation plan to distribute more than $100 million to creditors.
U.S. Bankruptcy Judge Kevin J. Carey signed off on the disclosure statement that opens the door for a plan confirmation hearing in July. Lisa Laukitis, the debtor’s counsel, told the courts that the approval of the disclosure statement represents “another important step” in the bankruptcy process.
With the proposed liquidation plan, general unsecured creditors will have their claims paid in full because of a settlement with the debtors’ British parent company, Tesco PLC. Tesco will receive a cash recovery only after all general unsecured creditors have been paid with interest. In return, both the debtors and their creditors will release all claims against Tesco, according to Law 360.
Since entering Chapter 11 in September, Fresh & Easy has sold off nearly all of its assets. For more information, check out our previous story by clicking the link below.
Click here to read: Fresh & Easy Wins Court Approval to Sell Assets to Yucaipa
Judge Carey scheduled a confirmation hearing for the plan on July 2nd.
Stay tuned to AndKnowUKnow as this story develops.
