A&P has agreed to receive $490 million of debt and equity financing from private investors that will enable the beleaguered grocer to emerge from bankruptcy as a privately held company early next year.


A&P, debt and equity financing, U.S. Bankruptcy Court for the Southern District of New York, Yucaipa Cos. LLC, Mount Kellett Capital Management LP, Goldman Sachs Asset Management LP, president and chief executive officer Sam Martin, Chapter 11








































































































































































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A&P secures Chap. 11 financing, plans emergence

November 7th, 2011

MONTVALE, N.J. – A&P has agreed to receive $490 million of debt and equity financing from private investors that will enable the beleaguered grocer to emerge from bankruptcy as a privately held company early next year.

The deal, which is subject to approval by the U.S. Bankruptcy Court for the Southern District of New York, calls for funding from the Yucaipa Cos. LLC, 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 plan of reorganization that it expects to file before November 14. A&P declared bankruptcy on December 12, 2010.

"This investment commitment is a very important step in A&P’s financial and operational turnaround," said president and chief executive officer Sam Martin in a statement. "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."

Martin added that management has been focused on trying to improve the in-store experience and generate improved operating and supply chain efficiencies, noting that the investors are committed to supporting additional operational and service improvements.

Following the close of the transaction and A&P’s emergence from Chapter 11 protection, the company’s current board of directors will be dissolved and a new board appointed in accord with the plan of reorganization. The chain intends to continue to operate its 336 stores normally through the reorganization and exit process.

At one time, A&P was the largest grocer in America, with more than 15,000 stores nationwide.

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