Posted 10/28/2013 12:00 am
Updated 12 months ago
As the Affiliated Foods Southwest Inc. bankruptcy case crawls into its fifth year, the total amount financial experts have helped recover for creditors now stands at $5.2 million.
In addition, the work from the folks at Lain Faulkner & Co. of Dallas, which offers bankruptcy, accounting and administrative services, led to vendors agreeing to waive about $2.4 million worth of claims against Affiliated as of Oct. 1, according to a recent Bankruptcy Court filing from Trustee Richard Cox of Hot Springs.
The money recovered came from Affiliated vendors who were paid within 90 days before the Little Rock grocery wholesaler filed for bankruptcy, which was way back in 2009. The bankruptcy law says that some payments made within 90 days of the debtor filing for bankruptcy could be voided.
There still might be more money out there for creditors. About 20 cases are “in progress and are expected to yield substantial additional cash benefit” to the creditors.
Cox said in a Sept. 13 filing that he had distributed $4.1 million at that point.
Cox asked the bankruptcy court to approve Lain Faulkner’s bill of $55,296 for work done between March and August. The firm has already been paid $250,000 for work done on the case.
And there was a lot of work to be done. If you recall, Affiliated Foods, once one of the state’s largest private companies, reported $47.6 million in assets and $101.5 million in debt — $62.5 million of it unsecured — when it filed for bankruptcy.
The fallout from the company’s collapse included prison sentences for former CEO John Mills and former CFO Alexander “Lex” Martinez. Both have completed their prison sentences.