Belle Foods Ch. 11 Deal Stiffs Some Creditors, Court Told

Law360, New York (January 16, 2014, 5:18 PM ET) -- The former landlord of bankrupt Belle Foods LLC on Thursday objected in Alabama bankruptcy court to a proposed $1.5 million trust for unsecured creditors to be funded by Belle Foods’ lenders, saying the misleading deal would leave general unsecured creditors with nothing.

Green Springs Ltd., which holds a $430,000 unsecured claim against Belle Foods, asked the court to deny a settlement proposed by the committee of unsecured creditors and Belle Foods’ primary lenders, Southern Family Markets LLC and C&S Wholesale Grocers, saying the agreement, which would...
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