C&S, Creditors Object to Penn Traffic Sale

SYRACUSE, N.Y. — Supplier C&S Wholesale Grocers and a group of creditors filed objections yesterday to the proposed liquidation of most of Penn Traffic's assets.

Penn Traffic, based here, last week said it reached an agreement to sell all but four of its locations to a group of sales agents for at least $36.5 million, and was discussing the sale the other four stores to Price Chopper, Schenectady, N.Y. The creditors said the sale process had proceeded too quickly, while C&S said its supply agreement of last year precludes Penn Traffic from liquidating in this manner.

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