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Regional independent Bashas last week sent a letter to its employees saying it expects to emerge from bankruptcy no later than August.
“We have been negotiating with two investment banking groups during the past two weeks,” Wrote Ed Basha, CEO and owner of the Chandler, Ariz.-based grocer, in the letter. “Both of them are interested in arranging for new financing for our company. The new financing would:
“—Fully repay our lenders, including banks and insurance companies immediately in cash, in the full amount that we owe them;
—Allow us to pay our unsecured creditors at a faster rate than previously anticipated, using a larger down-payment and then fixed payments over the next five years, and
—Permit our company to officially emerge from Chapter 11.”
Basha credited the new financing to the company’s successful restructuring and cash flow improvements, as well as improvements to capital markets in general.