Marsh Supermarkets and PBGC agree to settle $1.02 million in claims

By Caroline Salls

Pittsburgh, Oct. 20 – Marsh Supermarkets Holding, LLC requested court approval of a settlement that resolves the Pension Benefit Guaranty Corp.’s administrative and priority claims, according to a motion filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

Marsh said PBGC filed a $1.02 million claim in July in connection with alleged unpaid minimum funding contributions for the Employees’ Pension Plan of Marsh Supermarkets, Inc. and Subsidiaries.

The PBGC alleged that the minimum funding contribution claims are entitled to administrative expense priority in the amount of $226,278 for the normal cost portions of contributions attributable to the post-bankruptcy filing period and priority under section 507(a)(5) of the Bankruptcy Code in the amount of $433,223 for the normal cost portion of contributions attributable to the 180 days immediately before Marsh filed bankruptcy.

Under the proposed settlement, PBGC will have an allowed administrative expense claim in the amount of $45,000.

The $970,108 balance of PBGC’s claims will be deemed a non-priority general unsecured claim.

A hearing is scheduled for Nov. 14.

Marsh, an Indianapolis-based grocery chain, filed bankruptcy on May 11. The Chapter 11 case number is 17-11066.

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