The former operator of Maison Kayser’s U.S.-based bakeries filed a liquidation plan that would pay creditors from a cash pool and avoid “costly litigation” related to its use of Covid-19 relief funds.
Cosmoledo LLC’s wind-down plan includes a settlement with the committee of unsecured creditors, the Small Business Administration, and Santander Bank, which provided the bakery chain with a $6.6 million Paycheck Protection Program loan before the company went bankrupt in September.
Cosmoledo didn’t spend all of the money prior to the bankruptcy filing, causing disputes among creditors over the remaining funds and the priority of Santander’s claims.
The Chapter ...
Learn more about Bloomberg Law or Log In to keep reading:
See Breaking News in Context
Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.
Already a subscriber?
Log in to keep reading or access research tools and resources.