Former Fresh & Easy trustee objects to confirmation of amended plan

By Kali Hays

New York, June 26 – U.S. trustee Roberta A. DeAngelis objected to confirmation of the amended plan of reorganization of Old FENM Inc., formerly Fresh & Easy Neighborhood Market Inc., according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

DeAngelis said the plan should not be confirmed as it includes payment of undisclosed expenses of professionals employed by the creditors committee, “overly broad” debtor releases, pre-approval of the sale of unidentified company assets free and clear of all liens and encumbrances and a provision allowing the company to estimate the amount of disputed claims without a court ruling.

DeAngelis asked that he court deny the current plan and order changes based on the objection.

As previously reported, the court approved the disclosure statement related to the plan May 30.

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.

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

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.