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Bi-Lo to use $350 million to rebuild
Cash infusion will aid in reorganization of bankrupt company
Published: Nov. 24, 2009, 11:40 a.m.
Less than one month after another supermarket chain tried to buy it, Mauldin-based Bi-Lo will reorganize itself using a $350 million cash infusion.
The chain’s officials filed a reorganization plan with the U.S. Bankruptcy Court this week, which includes $150 million in new investment from its owner Lone Star Funds with an additional $200 million coming from term loan financing.
Lone Star also would provide $150 million in asset-based post-emergence lending, which is a financial tool for working capital and to fund normal business needs. The plan also sets up a series of steps in paying off its creditors.
“Today marks a significant milestone and an important next step in our restructuring efforts,” said Michael Byars, the company’s president and chief executive officer, in a statement
This is the latest action in the bankruptcy case that started in March when the venerable Upstate supermarket, which has lent its name to the region’s biggest entertainment complex as well as numerous charity efforts, filed.
Earlier this month, a judge denied Brussels-based Delhaize’s group’s exclusivity request to purchase certain Bi-Lo assets for $425 million and make the supermarket part of its Food Lion chain in the Carolinas.
That denial meant Delhaize could not file a reorganization claim, but still may be able to purchase the assets if a judge denies the Bi-Lo reorganization plan. The company has retained Greenville attorney Beattie Ashmore to make a court appearance for it.
According to court records, Bi-Lo has 13,859 employees in more than 200 stores in the Carolinas, Georgia and Tennessee.
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