Former Associated Wholesalers, Associated Food settlement approved

By Mark Reccek

Bethlehem, Pa., Feb. 2 – ADI Liquidation, Inc., formerly Associated Wholesalers, Inc., received court approval of a $190,000 settlement between the company and Associated Food Stores LLC, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The resolution reduces the disputed administrative expense claim from more than $3 million.

According to the settlement, ADI will pay Associated Food Stores within 10 days of the court approving the agreement.

Additionally, any and all administrative expense claims asserted by and through Associated Food Stores will be disallowed.

The settlement also stipulates ADI will grant a release to Associated Food Stores with respect to the filing and prosecution of the Associated Food Stores application and any and all administrative expense claims, as well as Associated Food Stores granting a release to ADI with respect to any and all administrative expense claims related to the Chapter 11 cases.

Associated Wholesalers is a cooperative food distributor and equipment retailer based in Robesonia, Pa., that filed for bankruptcy on Sept. 9, 2014. The Chapter 11 case number is 14-12092.

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