KB US Holdings’ Confirmation of Plan

Lowenstein Sandler represented the Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy case of KB US Holdings Inc. and several affiliates.

The Plan filed by the Debtors and subsequently approved by the court on February 22 will distribute the proceeds of a successful going-concern sale of $96 million to its creditors.

As a result of the Committee’s efforts in constructively working with the Debtors to extend the bid deadline, the auction achieved a significantly higher bid than the original stalking-horse offer of $75 million. The approved sale includes the purchase of 27 Kings and Balducci’s stores by Acme Markets, preserves thousands of jobs, and provides a viable counterparty for hundreds of vendors. A substantial amount of unsecured creditors’ claims were satisfied as a result of assumed liabilities, settled claims, and critical vendor payments. The company filed for Chapter 11 protection on August 23, 2020, in the U.S. Bankruptcy Court for the Southern District of New York.

KB US Holdings Inc. is the parent company of Balducci’s New York and Kings Food Markets.

The Lowenstein team was led by Joseph J. DiPasquale (Picture), Mary E. Seymour,  Kenneth A. Rosen, and Jennifer B. Kimble and includes Lowell A. Citron, Rachel Maimin, Jeremy D. Merkin, and Craig Dashiell.

Involved fees earner: Lowell Citron – Lowenstein Sandler LLP; Craig Dashiell – Lowenstein Sandler LLP; Joseph DiPasquale – Lowenstein Sandler LLP; Jennifer Kimble – Lowenstein Sandler LLP; Rachel Maimin – Lowenstein Sandler LLP; Jeremy Merkin – Lowenstein Sandler LLP; Mary Seymour – Lowenstein Sandler LLP;

Law Firms: Lowenstein Sandler LLP;

Clients: KB US Holdings – Official Committee of Unsecured Creditors;

Martina Bellini

Author: Martina Bellini