Nutritional Sourcing gets court OK on bidding procedures

By Reshmi Basu

New York, Aug. 17 - Nutritional Sourcing Corp. obtained approval Friday on the bidding procedures for the sale of its subsidiary Pueblo International, LLC from the U.S. Bankruptcy Court for the District of Delaware.

Judge Peter J. Walsh entered the order on Friday, according to the court document.

As reported earlier, Supermercados Econo, Inc. has submitted a $41.15 million stalking horse bid for Pueblo's distribution center assets, and members of an Econo cooperative have submitted a $48.6 million stalking horse bid for the purchase of the store leases, personal property and inventory at the stores.

If the stalking horse bidders are not the high bidder, Nutritional will pay them a $3.21 million break-up fee and reimbursement of up to $975,000 in expenses.

Bidders must include a $1 million deposit for the distribution center assets and a $1.3 million deposit for the store assets.

Competing bids must be for at least $4.69 million more than the purchase price.

Subsequent bids at auction must be made in increments of $100,000.

Meanwhile, the sale hearing is scheduled for Sept. 24.

Nutritional Sourcing operates a supermarket chain and a video rental store chain in Puerto Rico and the U.S. Virgin Islands. Its Chapter 11 case number is 07-11038.

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