AFA Investment granted 90-day extension to file plan, solicit votes

By Jim Witters

Wilmington, Del., July 24 - AFA Investment Inc. has received a 90-day extension of its exclusive periods for filing a plan of reorganization and seeking plan acceptances, according to documents filed July 24 with the U.S. Bankruptcy Court for the District of Delaware.

The filing period was extended to Oct. 29, and the solicitation period was extended to Dec. 27.

As previously reported, AFA believes its sale proceeds will be sufficient to pay its debtor-in-possession financing and pre-bankruptcy first-lien credit facility in full.

The proceeds are not expected to pay all junior secured claims under a pre-bankruptcy second-lien credit facility.

"The parties are now in a position to better understand the outcome of the sale process, which will assist them in negotiating appropriate resolutions of open issues," the company said in its motion seeking the extension.

AFA Investments, the parent company of AFA Foods Inc., a King of Prussia, Pa.-based processor of ground beef products, filed for bankruptcy on April 2. Its Chapter 11 case number is 12-11127.

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