Stock+Field cash collateral motion draws objection from U.S. trustee

By Sarah Lizee

Olympia, Wash., Jan. 13 – Tea Olive I, LLC’s, which does business as Stock+Field, cash collateral motion drew an objection on Wednesday from the U.S. trustee overseeing the case, according to a filing with the U.S. Bankruptcy Court for the District of Minnesota.

Region 12 U.S. trustee James L. Snyder said he is concerned that the debtor is seeking to assign estate property to the benefit of its senior secured lenders and at the expense of the other parties in interest, such as administrative expense holders not subject to the carve-out and priority and general unsecured creditors.

“The proposed order at paragraph 6 grants superpriority administrative status and a lien in chapter 5 causes of action to the secured lenders subject to the credit agreement,” Snyder said.

“In this district, such relief has resulted in administratively insolvent cases that conferred no benefit to other parties in interest.”

The U.S. trustee said that granting the secured lender a lien in assets that it would not ordinarily be entitled may deny the unsecured creditors their only viable asset in the case.

“The case should not be administered for the sole benefit of the secured lien holders,” he said.

As previously reported, Stock+Field is seeking court approval to use the cash collateral of its prepetition lenders and administrative agent Second Avenue Capital Partners, LLC. As of Sunday, the total outstanding amount owed under the credit agreement was $29.72 million.

The company said it needs access to cash collateral to continue the store closing sales in order to maximize the value of its assets for the benefit of the estate and its stakeholders.

Stock+Field is requesting interim authorization to use the cash collateral through Feb. 6 and final authorization to use cash collateral through May 29.

Stock+Field is a premier farm, home and outdoor retailer operating 25 stores across Illinois, Indiana, Ohio, Michigan, and Wisconsin. The company filed Chapter 11 bankruptcy on Jan. 10 under case number 21-30037.

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