Pipeline Foods Gets Court Nod for Chapter 11 Liquidation Plan

Organic food supplier Pipeline Foods LLC won court approval of its plan to liquidate in bankruptcy and pay unsecured creditors a small fraction of their claims.

Under the plan, approved at a hearing Tuesday, unsecured creditors will receive an estimated 1% to 1.9% of claims totaling between $80 million and $84 million.

The plan also allows Cooperatieve Rabobank UA, the debtor’s pre-bankruptcy secured lender, to recover an estimated 65% of a $44.3 million claim, according to plan disclosures. The bank already received a $20 million payment from the debtor earlier in the case, according to court documents.

Rabobank agreed ...