Earth Fare receives confirmation of Chapter 11 plan of liquidation

By Sarah Lizee

Olympia, Wash., June 29 – Earth Fare, Inc.’s Chapter 11 plan of liquidation was confirmed by the U.S. Bankruptcy Court for the District of Delaware, according to an order filed Tuesday.

As previously reported, the plan provides for the debtors’ assets, to the extent not already liquidated, to be liquidated over time and the proceeds to be distributed to holders of allowed claims. A wind-down officer will effect the liquidation and distributions. The debtors will be dissolved as soon as practicable after the effective date.

Under the plan, holders of priority non-tax claims will receive payment in full in cash.

Holders of other secured claims will receive payment in full in cash or the collateral securing their claims.

Holders of a first-lien facility claims will receive cash held by the debtors on the effective date of at least $10.1 million. Each holder will also receive, after payment of other claims, remaining cash of the debtors up to the face amount of their first-lien facility claim.

Holders of second-lien facility claims, general unsecured claims, intercompany claims and interests are not entitled to receive any distributions.

Earth Fare is an Asheville, N.C.-based specialty natural and organic grocery store and full-service supermarket. The company filed bankruptcy on Feb. 4, 2020 under Chapter 11 case number 20-10256.

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