Quaker Steak Bankruptcy Hearing Postponed to Jan. 5
YOUNGSTOWN, Ohio — Attorneys for Quaker Steak & Lube filed a motion late Monday seeking to adjourn today’s scheduled hearing before U.S. Judge Alan M. Koschik until Jan. 5.
The motion did not specify why the restaurant chain asked for the postponement. The hearing before Koschik, who sits in Akron, was to review bidding procedures for the sale of the assets of the restaurant chain (READ RELATED STORY).
Quaker Steak filed Chapter 11 bankruptcy reorganization Nov. 15 in combination with a $25 million asset purchase agreement with TravelCenters of America, the so-called stalking horse bidder in the sale of assets. Should more than one bidder emerge, and offer at least $250,000 more than TravelCenters, Quaker Steak attorneys ask that an auction be held Feb. 9 in the Cleveland offices of McDonald Hopkins LLC.
Objections to the bid procedures sought by Quaker Steak have been filed by the office of U.S. Trustee, which represents creditors, and Cortland Banks, which is owed $2.616,574 on equipment and mortgage loans.
Cortland Banks wants its debt paid off from the sale proceeds, not after expenses and costs are deducted.
A third objection was filed by the Official Committee of Unsecured Creditors, which “wholeheartedly supports” the effort to sell Quaker Steak’s assets to TravelCenters or the highest and best bidder, court documents say. Still, unsecured creditors wants court approval to employ, at Quaker Steak’s expense, a financial adviser to “conduct a thorough lien investigation.”
Copyright 2023 The Business Journal, Youngstown, Ohio.