Carla's Pasta unsecured creditors object to proposed asset sale

By Sarah Lizee

Olympia, Wash., April 13 – Carla's Pasta, Inc.’s official committee of unsecured creditors objected to the company’s motion to sell its assets to stalking horse bidder Tribe 9 Foods LLC, an affiliate of Natural Food Partners, LLC, according to a Monday filing with the U.S. Bankruptcy Court for the District of Connecticut.

The group claims the stalking horse asset purchase agreement does not comply with the requirements of the bid procedures order, and the proposed buyer purportedly intends to purchase the debtors’ claims arising under Chapter 5, but there is no information concerning whether the stalking horse buyer intends to pursue those claims.

Neither of the lenders, BMO Harris Bank, NA and People’s United Bank, NA, have agreed to any carveout for unsecured creditors, the committee said.

“It appears that this case is being run solely for the benefit of the secured creditors, with no benefit to any other party in interest, which is an improper use of the bankruptcy process,” the committee said in its objection.

The South Windsor, Conn.-based pasta manufacturing company filed bankruptcy on Feb. 8 under Chapter 11 case number 21-20111.

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