Mercon Coffee Bankruptcy Plan Unfair to Some Creditors, DOJ Says

Mercon Coffee Corp.'s bankruptcy plan unfairly discriminates against certain junior creditor groups and seeks to shield too many third parties from litigation, the Justice Department said.

The Netherlands-based green coffee supplier filed for Chapter 11 in December, citing an inability to pay its debts on time because of pandemic-era supply disruptions and high borrowing costs. It submitted its liquidation plan in May.

But the plan would allow a group of Dutch claimants to receive 20% of their claims while denying the same treatment to other creditors, the DOJ’s bankruptcy watchdog, the US Trustee, said in an objection filed Thursday in ...