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Rupari, CBQ $1 million settlement of escrow amount dispute approved
By Caroline Salls
Pittsburgh, Oct. 30 – Rupari Holding Corp. received court approval of a $1 million escrow settlement with asset purchaser CBQ, LLC, according to an order filed Monday with the U.S. Bankruptcy Court for the District of Delaware.
Rupari said the parties entered into an escrow agreement in connection with the asset purchase agreement. The escrow agreement established a $1 million account for an amount held back from the purchase price paid by CBQ.
The company said the escrow amount is to be released once the parties agree to an adjustment amount that should be paid back to CBQ to account for Rupari’s accounts receivable, inventory and other liabilities as of the sale closing.
According to the motion, Rupari and CBQ have each been evaluating the adjustment amount since the closing and have prepared estimates regarding the adjustment amount.
Rupari said the final adjustment amount was roughly $1.6 million. If uncontested, the company said the $600,000 balance would be paid from its estates.
However, Rupari objected to CBQ’s valuation of inventory, the inventory count, litigation hold costs, the value of a CH Robinson claim and accounts payable.
The company said it ultimately estimated that the adjustment amount should have been less than the escrow amount.
Under the settlement, Rupari debtors will submit a joint instruction that the escrow agent release the full $1 million escrow amount to CBQ.
South Holland, Ill.-based Rupari is a culinary supplier of uncooked and ready-to-eat sauced and unsauced ribs, barbeque pork and barbeque chicken. The company filed for bankruptcy on April 10, 2017 under Chapter 11 case number 17-10793.
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