Bloomberg Law
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Law
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Pipeline Foods Gets Court Nod for Chapter 11 Liquidation Plan

March 1, 2022, 6:34 PM

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 ...