Do Good Foods case stays open, but court lifts automatic stay for CSS

By Sarah Lizee

Olympia, Wash., Aug. 21 – The largest unsecured creditor of KDC Agribusiness LLC, which does business as Do Good Foods, lost a bid to dismiss the company’s Chapter 11 bankruptcy case, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

California Safe Soil (CSS) had filed a sealed motion seeking either dismissal or to lift the automatic stay so that it can pursue an action in the Chancery Court.

While judge Craig Goldblatt denied the dismissal request, he allowed the automatic stay to be lifted for CSS.

CSS holds a litigation claim, but the amount of the claim was not disclosed in the company’s petition, as previously reported.

KDC Agribusiness is a food waste recycling company based in Bedminster, N.J. The company filed bankruptcy on June 14 under Chapter 11 case number 23-10786.

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