Mercon Coffee Corp. won approval of its Chapter 11 liquidation plan after it made multiple asset sales during bankruptcy and changed the liability releases that its plan gave to employees.
Judge Michael E. Wiles of the US Bankruptcy Court for the Southern District of New York approved the plan Tuesday after he on July 22 rejected liability releases Mercon had sought for insiders.
Wiles determined those releases were improper transfers to insiders. Mercon had said the releases were necessary to incentivize company leaders to stay, but Wiles said they were improper under the bankruptcy code.
The version of the plan ...
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