Penn Traffic, Tops seek enforcement of sale order against landlord

By Lisa Kerner

Charlotte, N.C., March 31 - The Penn Traffic Co., its affiliated debtors and debtors-in-possession and Tops PT, LLC asked the court to enforce the sale order against National Industrial Portfolio, LLC, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

National Industrial, the landlord of the debtors' Syracuse, N.Y., warehouses "inexplicably has claimed an ownership right to certain of the assets" that the debtors sold to Tops under the asset purchase agreement approved by the court's sale order, the filing said.

When Tops and Tops liquidation agent Hilco Fixed Asset Recovery, LLC tried to remove shelving, racking and related trade fixture equipment from the warehouses, National Industrial threatened to begin an injunction and possible other litigation against the debtors, Tops and/or Hilco.

National Industrial may claim damages of more than $1 million, the filing said.

No hearing date has been set.

Penn Traffic, a Syracuse, N.Y.-based company involved in retail and wholesale food distribution, filed for bankruptcy on Nov. 18. The Chapter 11 case number is 09-14078.

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