Marsh Supermarkets granted approval of $30 million supply claim deal

By Caroline Salls

Pittsburgh, April 19 – Marsh Supermarkets Holding, LLC received court approval of a supply agreement claim settlement reached with Supervalu Inc., according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

Marsh said it stopped purchasing products from Supervalu on June 19, 2017 as a result of the sale or liquidation of substantially all of its assets. The company said it has not assumed or rejected the supply agreement.

Supervalu subsequently filed two $496,530 claims, including $470,175 for product it allegedly purchased exclusively for Marsh and 26,355 for the remaining amount allegedly due for iPads leased to the Marsh debtors.

In addition, Marsh said Supervalu plans to amend its claims upon entry of any order rejecting the supply agreement and to file a claim for roughly $95 million in rejection damages if the agreement is rejected.

Supervalu also filed a $2.7 million administrative expense claim for unpaid minimum fees.

Meanwhile, Marsh said its debtors claim that Supervalu owes them $3.2 million based on Supervalu’s guarantee that Marsh would receive a minimum level of vendor funds if it met specified requirements under the supply agreement.

Although the parties agree that the Marsh debtors are owed $367,550 for reconciled post-bankruptcy credits, Marsh said the parties also dispute the applicability of Supervalu’s setoff and recoupment rights on account of the Marsh credit claim.

Under the settlement, the supply agreement will be deemed to be rejected, and Supervalu will have a $30 million allowed, general unsecured claim.

Marsh, an Indianapolis-based grocery chain, filed for bankruptcy on May 11, 2017. The Chapter 11 case number is 17-11066.

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