The settlement was reached on Thursday, according to a document filed with the Securities and Exchange Commission on Friday. It would eliminate one of the legal uncertainties hanging over the dismantling of Haggen’s failed West Coast empire.

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Albertsons has agreed to pay $5.75 million in cash to settle a lawsuit in which bankrupt grocer Haggen sought to recoup $1 billion from the supermarket giant.

The settlement was reached on Thursday, according to a document filed Friday with the Securities and Exchange Commission.

It requires approval by the federal bankruptcy judge overseeing the overhaul of Haggen’s much shrunken business. The money will go to pay Haggen’s creditors.

As part of the deal, Albertsons agrees to transfer its unsecured claim of $8.25 million to Haggen’s other creditors in the bankruptcy.

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If approved, the settlement would do away with one of the uncertainties hanging over the dismantling of Haggen’s ill-fated bid for supermarket supremacy on the West Coast.

Haggen sued Albertsons as the wheels came off the vastly expanded business it acquired from the Idaho-based grocery giant when it merged with Safeway in early 2015.

Haggen claimed that Albertsons had sabotaged the transfer of the 146 stores it had sold to the Bellingham grocer. A few days after suing, Haggen filed for bankruptcy.

Albertsons said in a statement that Haggen’s claims “lacked any merit,” but the “settlement enables us to avoid costly litigation. We are pleased to put this matter behind us.”

Albertsons doesn’t need uncertainty as it seeks to go public. It delayed its initial public offering last October.

Haggen declined to comment on the settlement.