Former Fresh & Easy disclosure statement approved; plan hearing July 2

By Kali Hays

New York, May 30 - Old FENM Inc., formerly Fresh & Easy Neighborhood Market Inc., received approval of the disclosure statement related to its plan of reorganization, according to a May 30 order with the U.S. Bankruptcy Court for the District of Delaware.

A hearing to confirm the plan is set for July 2.

As previously reported, the company said the plan is based on a global settlement of claims with ultimate parent Tesco plc under which Tesco agreed to subordinate recoveries on more than $581 million in claims against the debtors and to contribute assets from debtor Old FEPC LLC to Old FENM so that all other allowed claims can be paid in full in cash.

The plan also provides for the general release of all claims by the debtors and their creditors against Tesco.

Treatment of creditors will include the following:

• Administrative claims, priority claims, secured claims and priority tax claims will be paid in full in cash;

• Holders of general unsecured claims will receive cash from a general unsecured claims trust account in an amount equal to the claim amount plus post-bankruptcy interest;

• Tesco will receive a settlement distribution consisting of new securities and any surplus cash available for distribution; and

• Holders of interests and pre-bankruptcy interdebtor claims will receive no distribution.

Fresh & Easy, a Wilmington, Del.-based grocery store chain, filed for bankruptcy on Oct. 1, 2013. The Chapter 11 case number is 13-12569.

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