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“We had a good first day in court,” Ed Basha, CEO of the Chandler, Ariz.-based regional independent Bashas’, wrote in a letter to employees that summarized the grocer’s first day in bankruptcy court to seek the judge’s approval for its amended plan of reorganization.
The trial, which is ongouing, is scheduled to continue next week.
Basha wrote that the company’s financial adviser, Christopher Linscott, testified last week that the company had successfully reorganized and could fulfill its obligations as outlined in its Non-Adverse Modification to the Plan of Reorganization.
Phil Giltner, treasurer and CFO of Shamrock Foods, who is also chairman of Bashas’ official committee of unsecured creditors, testified that the reorganization plan is strong due to the restructuring and cost-cutting measures in place. “The repaymegt plans are fair, and everybody is getting paid,” he told the judge. “That’s a laudable goal.” He noted that any time a supplier could be repaid 100 percent in bankruptcy, “it’s a good deal.”
According to Basha, the trial is scheduled to continue from July 28 through July 30, but could last longer if necessary. “We remain optimistic and believe that we have a compelling case,” he said.