Haggen seeks court approval of $7.81 million settlement with Topco

By Mark Reccek

Bethlehem, Pa., Nov. 23 – Haggen Holdings LLC requested court approval of a $7.81 million settlement with Topco Holdings, Inc. and Topco Associates LLC, according to a motion filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The settlement agreement provides that Topco will pay Haggen $328,362 for pre-petition declared patronage dividends and $7,485,822 for the accrued pre- and post-petition rebates, both payable through November 2015.

Also, the settlement agreement stipulates Topco will be permitted to retain a portion of the currently accrued rebates amounting to $75,000 as security for its unliquidated claim for attorney’s fees pending, as well as a portion of patronage dividends totaling $450,000 for 2015 that become payable in 2016 as security for an unliquidated claim for rejection or termination of the company’s membership interests in Topco.

“The proposed settlement provides for a fair and practical resolution of the issues raised by Topco, which, if litigated, would consume vast amounts of the debtors’ limited resources and could delay the debtors’ ongoing efforts to prosecute these cases in a timely and efficient manner,” the motion said.

A hearing on the motion is scheduled for Dec. 4.

Haggen, a Bellingham, Wash.-based supermarket company, filed bankruptcy on Sept. 8. The Chapter 11 case number is 15-11874.

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