Pipeline Foods unsecured creditors object to proposed inventory sale

By Sarah Lizee

Olympia, Wash., July 27 – Pipeline Foods, LLC’s official committee of unsecured creditors objected to the company’s motion to sell its inventory, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

“The rushed sales of inventory contemplated by the inventory sales motion may irreparably injure unsecured creditors in these cases, while providing no demonstrated benefit to the debtors, to say the least of the degree of benefit that would justify the emergency consideration required by the expedited relief motion,” the committee said in its objection.

The committee said it should be provided more time to consider the necessity of accelerated disposition of inventory and to work with the debtors to craft a consensual approval to disposition of the inventory.

A hearing is scheduled for July 30.

Pipeline Foods is a Minneapolis-based organic food supply chain. The company filed bankruptcy on July 8 under Chapter 11 case number 21-11002.

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