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Regional independent Bashas’ Family of Stores has emerged from Chapter 11 effective August 28, and this past weekend mailed the first round of checks to its creditors, according to a letter to employees from CEO Eddie Basha.
“The Chapter 11 process hasn’t been easy,” he wrote. “It’s important to realize that many companies don’t make it through the process. It’s even more rare for a company to ptopose tp pay back their creditors in full – with interest. We’ve managed to do both. In great measure it’s because of the efforts of all of our members, friends, and the support of many, many customers.”
The plan calls for a 10 percent payment on the effective date of all pre-petition obligations due general unsecured vendors. The remaining claim amounts will be paid with interest at 5 percent per annum, in 10 petrcent installments every six months thereafter, with the remaining balance paid on or before the third anniversary of the effective date.
Inclujded in this first round of checks, the lender group received a payment for interest held during the bankruptcy as well as a partial payment of the principle owed. The lender group will receive monthly principle and interest payments with the remaining balance to be paid on or before the third anniversary of the effective date.
“Unfortunately, our nation and state are in a recession,” wrote Basha. “We all must continue to give our best effort daily. We are working hard to grow sales and to improve our profitability.”