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In the wake the U.S. Bankruptcy Court for the District of South Carolina’s confirmation of its reorganization plan, Bi-Lo, LLC expects to emerge from bankruptcy this month.
As previously revealed, the reorganization plan, dated April 13, 2010, is sponsored by the chain’s owner, Lone Star Funds, and includes a $150 million new equity investment by Lone Star and $200 million in committed term loan financing from Credit Suisse. Additionally, GE Capital will provide for a $150 million revolving credit facility for Bi-Lo post-emergence to fund working capital and other normal business needs.
The Mauldin, S.C.-based regional grocer said it expects to have between $40 and $50 million of cash borrowings on the revolving credit facility right after emergence.
“This is a great achievement for Bi-Lo and is a reflection of the company’s current performance and our commitment to our customers, suppliers, and Teammates,” said Bi-Lo president and CEO Michael Byars. “Bi-Lo will emerge from bankruptcy financially stronger, with less debt, and as a more competitive company in the marketplace.”
According to Byars: “With our improved balance sheet, we will continue our commitment to the communities we proudly serve and provide our customers with the lowest possible pricing to deliver the best overall value, the freshest products and the same top-quality brands they have come to expect, all with friendly, helpful service from our 15,000 Teammates.”
Bi-Lo filed for Chapter 11 bankruptcy protection in March 2009.
Bi-Lo, LLC operates 207 supermarkets in South Carolina, North Carolina, Georgia and Tennessee, and employs about 15,100 people.