Inside This Issue - News
A&P takes steps to leave Chap. 11
November 28th, 2011
MONTVALE, N.J. – A&P has received a $490 million commitment from investors that will enable the beleaguered grocer to emerge from bankruptcy as a private company early next year.
The deal, which is subject to bankruptcy court approval, calls for funding from Yucaipa Cos., Mount Kellett Capital Management LP and investment funds managed by Goldman Sachs Asset Management LP.
According to A&P, the investment will enable the company to restructure its balance sheet, providing the foundation for a reorganization.
"This investment commitment is a very important step in A&P’s financial and operational turnaround," said president and chief executive officer Sam Martin.
"It positions us for a bright future with solid financial backing from sophisticated investors who know our company and industry well, and who also share our vision for A&P’s future."
Following the close of the deal and A&P’s emergence from Chapter 11, the company’s current board will be dissolved and a new board appointed in accord with the reorganization plan.
The supermarketer is intending to continue to operate its 336 stores normally through the reorganization.