Former Norpac Foods and committee submit joint plan of liquidation

By Caroline Salls

Pittsburgh, April 16 – North Pacific Canners & Packers, Inc., formerly Norpac Foods, Inc., and its official committee of unsecured creditors filed a plan of liquidation and related disclosure statement Wednesday with the U.S. Bankruptcy Court for the District of Oregon.

According to the disclosure statement, nearly all of the North Pacific debtors’ assets have been sold, and the sale proceeds have been primarily used to pay secured creditors.

The company said the plan calls for the creation of a liquidating trust “for the purposes of marshalling and liquidating all of debtors’ remaining assets, reconciling and compromising claims, making distributions to creditors and winding up debtors’ affairs.”

Under the plan, secured claims, administrative expense claims and priority claims will be paid in full on the plan effective date.

Holders of convenience class unsecured cl aims will recover 50% of the amount of their claims.

Holders of general unsecured claims will receive a share of interests in the liquidating trust, entitling them to receive cash distributions from the trust.

All interests will be cancelled on the plan effective date.

Salem, Ore.-based Norpac Foods is a grower-owned cooperative focused on processing frozen vegetables and fruit. The company filed bankruptcy on Aug. 22, 2019 under Chapter 11 case number 19-62584.

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