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Former Fairway Market Chapter 11 plan effective as of Oct. 30
By Sarah Lizee
Olympia, Wash., Oct. 30 – Old Market Group Holdings Corp.’s, formerly Fairway Market, Chapter 11 plan took effect on Friday, according to a notice filed with the U.S. Bankruptcy Court for the Southern District of New York.
As previously reported, the plan was confirmed on Oct. 5.
According to the disclosure statement, the company will distribute the cash proceeds from the sale of its assets to creditors under the plan.
Outstanding debtor-in-possession financing claims will be paid in full, unless plan sponsor Special Situations Investing Group, Inc. elects to convert the DIP claims into an exit facility and/or exchange all or a portion of its outstanding DIP claims for new common stock.
As part of a global settlement, $1.5 million will be contributed to a general unsecured recovery trust for the benefit of holders of allowed general unsecured claims.
If the plan sponsor makes the reorganized equity plan election, some of the debtors, including Fairway’s holding company, will reorganize around liquor licenses, inventory and the debtors’ related wine business in exchange for the sponsor forfeiting a reallocated amount to be distributed to other senior first-out term loan claimants.
If the plan sponsor does not make the reorganized equity plan election, the reorganized assets will be liquidated and distributed to claimholders in accordance with the plan.
If the reorganized equity plan election is made, all parent equity interests will be deemed cancelled. If not, all holders of parent equity interests will be entitled to receive their share of any assets of the wind-down estates remaining after all allowed claims have been satisfied in full.
Fairway is a supermarket chain with locations in New York, New Jersey and Connecticut. The company filed bankruptcy on Jan. 23, 2020 under Chapter 11 case number 20-10161.
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