12-year-old bankruptcy ends for Affiliated Foods Southwest

The bankruptcy case of Little Rock-based wholesale food company Affiliated Foods Southwest, which began more than 12 years ago, has been closed, court documents show.

In early March, Richard Cox, Chapter 7 trustee, submitted his final account and distribution report to Judge Richard D. Taylor, which showed $ 20.9 million in abandoned claims and $ 91.89 million in unloaded claims. payment.

The trustee distributed $ 12.91 million of the bankruptcy estate, of which $ 7.35 million went to creditors and $ 5.56 million for administrative expenses, according to the documents. Of the paid claims, $ 1.23 million went to secured creditors, $ 2.28 million went to senior unsecured debts, and $ 3.84 million went to general unsecured debts, according to the report. .

The company initially filed for Chapter 11 in an attempt to reorganize its debts, then moved on to Chapter 7 to liquidate the holdings of the company. Court documents showed the bankruptcy case closed on Wednesday.

In May 2009, Affiliated Foods Southwest filed for bankruptcy in the US Bankruptcy Court for the Eastern District of Arkansas, Central Division, after more than 50 years in business. The company ceased operations in July of that year and approximately 1,800 workers at Affiliated Foods and its associated companies lost their jobs.

Affiliated Foods Southwest was a wholesale food distribution company that supplied products, services and technology to independent grocery stores and chains in Arkansas, Texas, Louisiana, Mississippi, Oklahoma and Tennessee .

The bankruptcy included $ 34 million held by more than 600 employees or members of the co-op, according to an earlier report by the Arkansas Democrat-Gazette. The investment plans, known as certificates of debt, accounted for more than half of the company’s $ 62 million in unsecured debt. Certificates were a form of loan given to the company for working capital.

A former chief executive of Affiliated Foods Southwest served federal prison time for a kit-vetting scheme involving the company, as has the company’s former chief financial officer.

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