Maines Paper & Food Service has filed a notice indicating that their Chapter 11 plan of liquidation went into effect on October 15. Lowenstein Sandler serves as counsel to the Official Committee of Unsecured Creditors in the matter.
The upstate New York-based foodservice supply chain services and products distributor filed for Chapter 11 protection along with 12 affiliates on June 10, 2020. The individual debtors reported various asset levels and up to $100 million to $500 million in liabilities. U.S. Bankruptcy Judge Karen B. Owens in the District of Delaware confirmed the plan of reorganization in the Chapter 11 bankruptcy case on September 16.
Substantially all of the debtors’ assets were sold to Lineage Logistics prior to the bankruptcy petitions through a foreclosure process. During the pendency of the bankruptcy case, the Lowenstein team conducted a thorough analysis of involved parties’ pre-petition conduct and negotiated an Amended Plan, which provided benefits to unsecured creditors (including limiting the releases sought and preserving causes of action for the Liquidating Trust to pursue for the benefit of creditors), altered the funding and composition of a Liquidating Trust, and waived all preference claims against holders of allowed unsecured claims.