Former Fresh & Easy sets property sale procedures, seeks extension

By Caroline Salls

Pittsburgh, Jan. 2 - Old FENM Inc., formerly Fresh & Easy Neighborhood Market Inc., requested court approval of the bid procedures for the proposed $53.5 million and $49.5 million sales of two properties in Stockton, Calif., according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

US Real Estate LP is the stalking horse bidder for both properties.

If US Real Estate is not the high bidder, Old FENM would reimburse a total of up to $100,000 in its sale-related expenses and pay it a total of up to $1.6 million in break-up fees.

Competing bids are due by noon ET on Feb. 14. If more than one qualified bid is received, an auction will be held on Feb. 18.

The minimum overbid amount will be $350,000.

In addition, Old FENM requested an extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan.

Specifically, the company wants to extend its exclusive plan-filing period through April 1 from Jan. 28 and the solicitation period through May 31 from March 31.

According to the motion, the proposed extension would give Old FENM more time to continue negotiations with its official committee of unsecured creditors and ultimate parent Tesco plc on the terms of a plan.

Based on current estimates of their assets and debts, the Old FENM debtors said they believe their plan will provide for the full payment of allowed claims of non-affiliated entities.

Hearings on the bid procedures and exclusivity extension are scheduled for Jan. 22.

Fresh & Easy, a Wilmington, Del.-based grocery store chain, filed for bankruptcy on Oct. 1. The Chapter 11 case number is 13-12569.

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