Shopko receives approval of long-awaited settlement with McKesson

By Sarah Lizee

Olympia, Wash., Dec. 3 – Shopko received court approval of a settlement with McKesson Corp., according to an order filed Friday with the U.S. Bankruptcy Court for the District of Nebraska.

In June 2019, the company had received court confirmation of its Chapter 11 plan of reorganization. However, the order confirming the plan was appealed by McKesson.

Among the issues appealed by McKesson was the proposed less-than-full payment of its administrative claim, which McKesson said violated bankruptcy code.

Because of McKesson’s appeal, the plan has not gone into effect.

However, the parties have now resolved all disputes regarding the administrative claim, the appeal and McKesson’s objections to the plan.

Under the settlement, McKesson’s administrative claim will be allowed in the amount of $1.2 million, and the debtors will be required to pay the claim within five days of the effective date of the plan.

McKesson will wave and not be entitled to any post-petition interest on account of its claim, and will be deemed a releasing party under the plan.

Shopko is a Green Bay, Wis., operator of general merchandise stores throughout the Central, Western and Pacific Northwest regions of the United States. The company filed bankruptcy on Jan. 16, 2019 under Chapter 11 case number 19-80064.

© 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.