Former Allens Chapter 11 case will convert to Chapter 7 for wind-down

By Kali Hays

New York, May 30 - The Chapter 11 bankruptcy case of Veg Liquidation Inc., formerly Allens, Inc., will be converted to Chapter 7 upon the expected entry of a court order, according to an attorney familiar with the case.

As previously reported, the company entered into a stipulation tied to wind-down funding that required the case be converted.

The stipulation resolves a dispute over the ownership of a carve-out excess and allows the company to use a portion of that excess to pay fees and expenses of its estate from the closing of its asset sale through the conversion date.

The effective date of the conversion will be the date the order is entered, according to the attorney.

Allens, a Siloam Springs, Ark., canned and frozen vegetable company, filed bankruptcy on Oct. 28. The Chapter 11 case number is 13-73597.

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