Majority of Allen Family Foods creditors vote to accept liquidation plan

By Jim Witters

Wilmington, Del., Dec. 14 - A majority of Allen Family Foods, Inc. voting creditors accepted the company's first amended joint Chapter 11 plan of liquidation proposed by the debtors and the official committee of unsecured creditors, according to documents filed Dec. 13 with the U.S. Bankruptcy Court for the District of Delaware.

Only holders of general unsecured claims were entitled to vote on the plan.

Stephenie Kjontvedt, vice president and senior consultant at Epiq Bankruptcy Solutions, LLC, said that 99.67% in amount ($3.06 million) and 95.38% in number (124) voted to accept the plan.

Voting to reject the plan were 4.64% in number (six) and 0.33% in amount ($10,034).

The plan confirmation hearing is scheduled for Dec. 19.

Plan provisions

The company sold substantially all of its assets to Harim USA, Ltd. in July 2011. That sale closed on Sept. 6, 2011.

The proposed plan is designed to liquidate, collect and maximize the cash value of the company's remaining assets and distribute the proceeds through a liquidating trust.

The liquidating trust will pay all allowed priority claims and administrative expense claims in full that were not previously been paid by the debtors.

If any assets remain, holders of allowed general unsecured claims will receive a share.

The holders of intercompany claims and interests will receive no distributions from the liquidating trust.

Allen Family Foods, a Seaford, Del.-based poultry producer, filed for bankruptcy on June 9, 2011. Its Chapter 11 case number is 11-11764.

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