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(Reuters) – Minnesota-based organic food and feed supplier Pipeline Foods LLC on Thursday got approval to go ahead with an accelerated auction and sale of some properties in Iowa and working with junior creditors to sell the rest of its assets.
U.S. bankruptcy judge Karen Owens in Wilmington, Delaware, approved the sale proceedings in a brief virtual hearing. Pipeline, represented by Saul Ewing Arnstein & Lehr, filed for bankruptcy in July with debt of $ 143.7 million, blaming the economic impact of the COVID-19 pandemic for its problems.
Owens also approved The Scoular Company as the lead bidder for the real estate and storage facilities at Pipeline Atlantic, Iowa. Scoular has offered $ 4.35 million for the property.
Competing offers are due October 21. If additional bids are made, an auction will take place on October 22. A sales hearing is set for October 28.
Pipeline attorney Monique DiSabatino told Owens at the hearing that the company is working with its unsecured creditors committee on a joint Chapter 11 liquidation plan. Senior administrative creditors may not be in full. paid.
Owens said she was “very happy” that the company and the creditors agreed on a path forward to close the bankruptcy.
“We are really now at the most critical part of the whole affair,” she said.
The case is In re Pipeline Foods LLC, United States Bankruptcy Court, District of Delaware, No. 21-11002.
For Pipeline: Monique DiSabatino, Michael Gesas, Mark Minuti, John Demmy, Matthew Milana, Barry Chatz, David Golin and Andrew Rudolph de Saul Ewing Arnstein & Lehr
For the Unsecured Creditors Committee: Kevin Collins and Connie Lahn of Barnes & Thornburg