Nutritional Sourcing debtor sets bid procedures for $26.5 million De Diego grocery store sale

By Caroline Salls

Pittsburgh, Feb. 8 - Nutritional Sourcing Corp. has asked the U.S. Bankruptcy Court for the District of Delaware to approve the bidding procedures for the proposed $26.5 million sale of its Pueblo International, LLC debtor's De Diego grocery store assets, according to a Thursday court filing.

Empresas A. Cordero Badillo Inc. is the stalking horse bidder, and it will pay a $1.33 million deposit.

If Empresas is not the high bidder, Pueblo will pay it a $750,000 break-up fee, plus up to $150,000 for sale-related expenses.

Competing bids must be for at least $27.55 million and must include a deposit of 5% of the proposed purchase price. Subsequent bids at auction must be for at least $100,000 more than the previous bid.

Bids are due on April 23, and the auction is scheduled for April 30. The company is asking the court to schedule the sale hearing for May 1.

A hearing on approval of the bid procedures is scheduled for Feb. 25.

Nutritional Sourcing operates a supermarket chain and a video rental store chain in Puerto Rico and the U.S. Virgin Islands. The company filed for bankruptcy on Aug. 3. Its Chapter 11 case number is 07-11038.

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