Pipeline Foods, committee’s statement approved; plan hearing March 1

By Sarah Lizee

Olympia, Wash., Jan. 20 – Pipeline Foods, LLC and its official committee of unsecured creditors’ disclosure statement for their Chapter 11 plan of liquidation was approved on Thursday by the U.S. Bankruptcy Court for the District of Delaware, according to an order.

The plan confirmation hearing is scheduled for March 1.

The plan provides for the consolidation of the debtors and the distribution of their assets, which have already been liquidated or will be liquidated in the future, to holders of allowed claims under the plan. The assets are largely cash, accounts receivable, fully encumbered real estate, a small grain elevator and storage facility, and the causes of action. All of the assets will be transferred into a liquidating trust, and a liquidating trustee will administer and liquidate the assets.

All allowed secured claims, including the Rabobank secured claim, the Compeer secured claims and the other secured claims, section 503(b)(9) claims, administrative expense claims, professional fee claims, priority tax claims and allowed priority non-tax claims will be paid or otherwise satisfied in full.

Holders of general unsecured claims will receive their pro rata share of the excess 503(b)(9) Atlantic sale/Van Mol proceeds, if any, to the extent the liquidating trustee deems advisable, with said funds being transferred to the distribution account and earmarked for the claims if the liquidating trustee declines to make said distribution. Holders will also receive, on each subsequent distribution date and the final distribution date, subject to the prior payment in full of any amounts owed to Rabobank in respect of the Rabobank liquidation preference, all then-available proceeds, minus all actual and anticipated post-effective date expenses, of the unsecured creditor post-effective date distributable assets.

All equity interests will be canceled, with no distribution to holders.

Pipeline Foods is a Minneapolis-based organic food supply chain. The company filed bankruptcy on July 8, 2021 under Chapter 11 case number 21-11002.

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