Former Associated Wholesalers files plan of liquidation, disclosure

By Caroline Salls

Pittsburgh, Feb. 22 – ADI Liquidation, Inc., formerly Associated Wholesalers, Inc., filed a plan of liquidation and related disclosure statement Friday with the U.S. Bankruptcy Court for the District of Delaware.

The company said the plan incorporates a settlement agreement with asset purchaser C&S and calls for the liquidation of ADI’s remaining assets, wind down of its estates and reconciliation of claims.

Treatment of creditors will include the following:

• Priority non-tax claims will be paid in full in cash;

• Holders of secured claims will either be paid in full in cash or receive the collateral securing the claim;

• Secured bank claims will be paid with bank reserves as liquidated;

• Holders of general unsecured claims and vendor claims will be paid in cash through three distributions, and, if necessary, a catch-up distribution;

• If holders of Pension Benefit Guaranty Corp. claims vote to accept the plan, they will receive amounts in a custodial account, plus treatment as general unsecured creditors. If they vote to reject the plan, their claims will be disputed and treated as priority tax claims or general unsecured claims if allowed; and

• Interest holders will receive no distribution.

Associated Wholesalers is a cooperative food distributor and equipment retailer based in Robesonia, Pa., that filed for bankruptcy on Sept. 9, 2014. The Chapter 11 case number is 14-12092.

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