Maines Paper & Food Service plan of liquidation confirmed by court

By Caroline Salls

Pittsburgh, Sept. 17 – Maines Paper & Food Service, Inc.’s amended plan of liquidation was confirmed Wednesday by the U.S. Bankruptcy Court for the District of Delaware.

The plan calls for a trustee to liquidate or otherwise dispose of the company’s remaining assets.

According to the disclosure statement, plan releases in favor of Maines’ pre-bankruptcy ABL lenders and agent are contingent on the ABL agent releasing $2 million from escrow to fund distributions to general unsecured creditors.

All plan assets will be vested in a single liquidating trust for distribution.

Under the plan, priority claims will be paid in full in cash.

The holder of the ABL secured claims will retain its lien on the collateral securing the claim until it is released or disposed of in connection with Maines’ foreclosure agreement and cash collateral orders and the plan.

The holder of a Darden note secured claim and the holder of a term loan guarantee claim will receive no distribution.

Holders of other secured claims will be paid in full, receive the collateral securing the claims or retain a lien on the collateral until it is sold.

Holders of existing equity interests and intercompany claims will receive no distribution.

Conklin, N.Y.-based Maines operates as an independent foodservice distributor in the United States. The company filed bankruptcy on June 10 under Chapter 11 case number 20-11502.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.