Minnesota-based organic food and feed supplier Pipeline Foods LLC on Thursday secured approval to move forward on a fast-tracked auction and sale of certain property in Iowa and to work with junior creditors to sell off the rest of its assets, Reuters reported. U.S. Bankruptcy Judge Karen Owens in Wilmington, Del., signed off on the sale procedures during a brief virtual hearing. Pipeline filed for bankruptcy protection in July with $143.7 million in debt, blaming the economic impact of the COVID-19 pandemic for its troubles. Judge Owens also approved The Scoular Company as the lead bidder for Pipeline’s Atlantic, Iowa-based real estate and storage facility. Scoular has offered $4.35 million for the property. Competing bids are due on Oct. 21. If additional bids are made, an auction will occur on Oct. 22. A sale hearing is set for Oct. 28.
