Retail News Breaks Archives
Bi-Lo set to emerge from bankruptcy
April 30th, 2010
GREENVILLE, S.C. – Bi-Lo has received court approval of its reorganization plan and expects to emerge from bankruptcy in May.
The Southeastern supermarket chain said Thursday that the United States Bankruptcy Court for the District of South Carolina confirmed its reorganization plan dated April 13, 2010. The retailer filed for Chapter 11 bankruptcy protection in late March 2009.
Under the reorganization plan, Bi-Lo will receive a $150 million equity investment by plan sponsor Lone Star Funds and $200 million in committed term-loan financing from Credit Suisse.
In addition, GE Capital will provide a $150 million revolving credit facility for Bi-Lo once it emerges from bankruptcy to fund working capital and other normal business needs, the food and drug retailer said. The company added that it expects to have $40 million to $50 million in cash borrowings on the revolver immediately after emergence.
"We are very pleased to have reached this major milestone in Bi-Lo's history," Michael Byars, president and chief executive officer of Bi-Lo, said in a statement. "This is a great achievement for Bi-Lo and is a reflection of the company's current performance and our commitment to our customers, suppliers and teammates. Bi-Lo will emerge from bankruptcy financially stronger, with less debt, and as a more competitive company in the marketplace."
Based in Mauldin, S.C., Bi-Lo operates 207 supermarkets in South Carolina, North Carolina, Georgia and Tennessee and employs about 15,100 people.
"With our improved balance sheet," Byars added, "we will continue our commitment to the communities we proudly serve and provide our customers with the lowest possible pricing to deliver the best overall value, the freshest products and the same top-quality brands they have come to expect."