Unsecured Creditors Get Almost Nothing from Topps

US - The assets of bankrupt Topps Meat Co., which collapsed after a massive recall prompted by contaminated hamburgers, were sold Tuesday for more than $1.25 million, but thousands of creditors will see little, if any, of that money.
calendar icon 9 January 2008
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All but $107,500 will go to RBS Citizens Bank of Philadelphia, which had a secured claim because it loaned Elizabeth-based Topps $14.5 million, said Catherine E. Youngman, the court-appointed trustee for what had been one of the nation's largest makers of frozen beef patties.

More than 5,000 other creditors, which include Wal-Mart Stores Inc. and supermarket chains that sold Topps hamburgers, as well as individuals who bought its products, have unsecured claims of about $1 million.

They could get a share of the $107,500, and eventually see more money through litigation by the trustee, Youngman said.

"There are claims that will be pursued to generate funds for the creditors," Youngman said. She declined to say who might be sued.

She also said that about 40 creditors may get payments through claims to Topps' insurance carriers, while eight creditors have filed their own lawsuits.

Source: NewsDay.com

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