Marsh Supermarkets bid procedures and cash collateral use approved

By Caroline Salls

Pittsburgh, May 30 – Marsh Supermarkets Holding, LLC received court approval of the bid procedures for the proposed sale of its assets, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, an analysis of store performance led to Marsh ceasing operations at 11 of its stores, planning a liquidation of and exit from 19 underperforming and/or unprofitable remaining stores in an effort to conserve resources and maximize utility and planning a Chapter 11 auction and sale process for the balance of the remaining stores.

Marsh reserved the right to enter into a stalking horse agreement for the remaining store assets.

Under the sale procedures, any stalking horse bidder would receive a 2% break-up fee and a 1% expense reimbursement if it is ultimately not the high bidder for the assets.

Competing bids must at least equal the amount of any stalking horse bid, plus the amount of the break-up fee and expense reimbursement and a $100,000 overbid amount.

Bids are due by 5 p.m. ET on June 7.

An auction will be held on June 12, if necessary, and the sale hearing is scheduled for June 14.

In addition, Marsh received further interim court approval to use the cash collateral of its senior lien agent Wells Fargo Bank, NA and its junior noteholder to fund its operations while in bankruptcy.

The final cash collateral use hearing is scheduled for June 6.

Marsh, an Indianapolis-based grocery chain, filed bankruptcy on May 11. The Chapter 11 case number is 17-11066.

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