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Judge reduces break-up fee in AWI case

The judge overseeing Associated Wholesalers Inc.'s bankruptcy auction on Friday ordered that the break-up fee owed to “stalking horse” C&S Wholesale Grocers be lowered from $5 million to $3.75 million, following objections of other bidders and creditors in the case.

Jon Springer, Executive Editor

October 6, 2014

1 Min Read
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The judge overseeing Associated Wholesalers Inc.'s bankruptcy auction on Friday ordered that the break-up fee owed to “stalking horse” C&S Wholesale Grocers be lowered from $5 million to $3.75 million, following objections of other bidders and creditors in the case.

Judge Kevin J. Carey also set a bid deadline of Oct. 22 and scheduled the auction to take place Oct. 24. A sale hearing will be held Oct. 29, at which time AWI intends to enter into a sale agreement with the high bidder.

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As previously reported, C&S has offered to acquire AWI and its White Rose subsidiary for the lesser of AWI’s bank debt — at least $132 million, according to AWI — or $152 million, along with adjustments for various additional debts. C&S also contributed $18 million in DIP financing allowing AWI to continue as a going concern during its Chapter 11 process.

Potential rival bidder Supervalu and a group of supplier-creditors had filed separate limited objections to the plan, citing what they called an “excessive” $5 million breakup free payable to C&S which would leave less for the estate.


 

About the Author

Jon Springer

Executive Editor

Jon Springer is executive editor of Winsight Grocery Business with responsibility for leading its digital news team. Jon has more than 20 years of experience covering consumer business and retail in New York, including more than 14 years at the Retail/Financial desk at Supermarket News. His previous experience includes covering consumer markets for KPMG’s Insiders; the U.S. beverage industry for Beverage Spectrum; and he was a Senior Editor covering commercial real estate and retail for the International Council of Shopping Centers. Jon began his career as a sports reporter and features editor for the Cecil Whig, a daily newspaper in Elkton, Md. Jon is also the author of two books on baseball. He has a Bachelor of Arts degree in English-Journalism from the University of Delaware. He lives in Brooklyn, N.Y. with his family.

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