KB US Holdings Chapter 11 plan effective as of Feb. 26

By Sarah Lizee

Olympia, Wash., March 1 – KB US Holdings, Inc.’s Chapter 11 plan went into effect on Friday, according to a notice filed with the U.S. Bankruptcy Court for the Southern District of New York.

The plan was confirmed on Feb. 22, as previously reported.

The plan includes the sale of substantially all of the debtors’ assets and the wind-down of any remaining affairs after the effective date. KB US sold its assets to Acme Markets, Inc. for $96.4 million.

Holders of other priority claims will receive payment in full in cash of the unpaid portion of their claims.

Holders of other secured claims will receive the collateral securing their claims or other treatment leaving them unimpaired.

Holders of pre-petition secured loan claims will receive an amount equal their ratable share of the sale proceeds remaining after deducting the effective date cash amount and payment of the debtor-in-possession claims. The effective date cash amount means an amount of cash sufficient to fund the administrative and priority claims reserve, the professional fee reserve and the wind-down amount. Holders of pre-petition secured loan claims will also receive excess cash.

General unsecured claims, pre-petition secured loan deficiency claims, section 510(b) claims and intercompany claims will be canceled and holders will not receive any distributions.

Holding company interests and intercompany interests will be canceled and holders will receive no distributions.

KB is a Parsippany, N.J.-based operator of food retail stores. The company filed bankruptcy on Aug. 23, 2020 under Chapter 11 case number 20-22962.

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