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Tops Holding II – Seeks Court Approval of Settlement Agreement

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August 9, 2018 – Tops Holding II filed with the Court a motion to approve (a) global settlement among Debtors, United Food and Commercial Workers International Union District Union Local One And United Food And Commercial Workers Local One Benefit Funds (UFCW) and (b) assumption of amended collective bargaining agreements [Docket No.501].

The motion explains, “the key elements of the UFCW Settlement are: i. Consensual modification of the applicable collective bargaining agreements with UFCW Local One and the United Food and Commercial Workers International Union District Union Local 1776 KS (“UFCW Local 1776 KS”) to provide for a complete withdrawal by the Debtors from the Pension Fund as of July 31, 2018; ii. The Debtors shall commence participating in and making contributions toward a defined contribution plan (the ‘401(k) Plan’) for the benefit of the Debtors’ employees represented by the UFCW Local One, including (a) a one-time payment of twelve million dollars ($12,000,000) (the ‘One Time 401(k) Contribution’) and (b) monthly contributions over the remaining term of the Current UFCW Local One CBAs (as defined below) pursuant to an agreed contribution formula that is estimated to achieve seventeen million dollars ($17,000,000) in contributions over the remaining twenty-one (21) months of the collective bargaining agreements; iii. The Current UFCW Local One CBAs, as amended (the ‘Amended UFCW Local One CBAs), and the Amended UFCW Local 1776 KS CBAs shall be assumed pursuant to 11 U.S.C. § 365; The motion for payment of administrative expenses [ECF No. 260] (the ‘Administrative Claim Motion’) filed by the Pension Fund and UFCW Local One is resolved, by reducing the disputed monthly contributions by 50%, allowing such reduced amount as an allowed administrative expenses of the Debtors’ estates, and paying such reduced amount immediately; and All claims arising from the Debtors’ obligations to contribute to the Benefit Funds under the Current UFCW Local One CBAs and other related matters are resolved…The UFCW Settlement is a major milestone in these chapter 11 cases. It provides necessary savings to the Debtors by eliminating costly recurring contributions to the Pension Fund while also assuring that every dollar of the contributions to the 401(k) Savings Fund will benefit their intended recipients. The UFCW Settlement eliminates a major roadblock to the Debtors’ ability to propose a chapter 11 plan (the ‘Chapter 11 Plan’) and clears a path to the Debtors’ emergence from these chapter 11 cases with a deleveraged balance sheet and sustainable cost structure.”

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The post Tops Holding II – Seeks Court Approval of Settlement Agreement appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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