Groeb Farms wants court to approve $1.5 million settlement of claims

By Lisa Kerner

Charlotte, N.C., Dec. 16 - Groeb Farms, Inc. asked the court to approve a settlement among parties including Federal Insurance Co., the official committee of unsecured creditors, Marquette Capital Fund I, LP, Argosy Investment Partners III LP, Horizon Partners, Ltd. and Horizon Capital Partners III, according to a Monday filing with the U.S. Bankruptcy Court for the Eastern District of Michigan.

The settlement agreement will result in payment of $1.5 million to the general unsecured claims litigation trust to settle all derivative claims against the debtor's officers and directors with respect to the deferred prosecution events, as defined in the settlement agreement, the filing said.

Also, the settlement resolves claims filed by the Groebs in the bankruptcy case and claims the debtor has against the Groebs, with certain exceptions.

Groeb Farms, an Onsted, Mich.-based processor and packager of honey for food manufacturers, food service companies and retail customers, filed bankruptcy on Oct. 1. The Chapter 11 case number is 13-58200.

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