Pipeline Foods Wins Approval to Seek Vote on Liquidation Plan

Pipeline Foods LLC, a bankrupt organic food supplier in Minnesota, won court permission to seek creditor votes on its liquidation plan.

The plan proposes to pay unsecured creditors an estimated 1% to 1.9% of their claims totaling between $80 million and $84 million.

Rabobank U.A., a secured creditor, would recover an estimated 65% of a $44.3 million claim, according to the plan’s disclosures.

Judge Karen B. Owens of the U.S. Bankruptcy Court for the District of Delaware Thursday approved the disclosures, which are sent to creditors along with ballots to vote.

The Fridley, Minn.-based company, which specializes in organic and ...