New Delaware Chapter 11 Filing – Central Grocers, Inc. 17-10993
Following the commencement of an involuntary proceeding against the company by certain creditors in Illinois, Central Grocers, Inc., a retail food cooperative and distributor founded in 1917, and 11 of its affiliates, has filed for chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware (Lead Case No. 17-10993 BLS). The petition lists between $100 million and $500 million in both assets and liabilities. According to the First Day Declaration, the Debtors intend to sell their assets as a going concern pursuant to section 363 of the Bankruptcy Code. Pursuant to the Company’s press release, “Central Grocers is also seeking to sell its distribution center in Joliet as it winds down its wholesale distribution operations.” The Debtors are entering chapter 11 without a Stalking Horse Bidder. The Debtors are seeking joint administration of these cases. Prime Clerk is the proposed claims agent. The Honorable Brendan L. Shannon will be presiding over these cases.
Contact Norman L. Pernick and Nicholas J. Brannick for more information.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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