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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.
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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.
