Eagle Food board OKs initial distribution to unsecured creditors

By Caroline Salls

Pittsburgh, May 16 - Eagle Food Centers Inc.'s board of directors approved an initial distribution to general unsecured creditors of 14.7% of their $102.8 million in claims.

The initial distribution also will include a single payment to allowed convenience class 4 claimants of about $63,000.

Under Eagle's first amended joint plan of liquidation, distributions to holders of $14.5 million in disputed claims will be held in a $2.1 million disputed claims reserve for distribution when the claims are resolved.

Eagle's liquidation became effective on April 8, 2004 and all preferred and common stock was cancelled.

Eagle Food, a Milan, Ill., regional supermarket chain, filed for bankruptcy on April 7, 2003 with the U.S. Bankruptcy Court for the Northern District of Illinois. Its Chapter 11 case number is 03-15299.

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