Bankrupt Baker May Give Unused Federal Rescue Loan to Creditors

July 20, 2021, 3:36 PM

An unused federal loan meant to rescue an artisanal French bakery chain in New York during the pandemic may help pay creditors of the bankrupt company rather than go back to the government.

Under a settlement outlined in a court hearing in Manhattan on Tuesday, the $5.3 million remaining from the loan will be used to help pay the debts of Cosmoledo LLC, which owned the U.S. stores of the famous French Maison Kayser brand. The deal is designed to ensure that a portion of the money will pay creditors who would have been eligible for reimbursement under the ...

To read the full article log in.

Learn more about a Bloomberg Law subscription.