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Bi-Lo, LLC said this week that it has successfully completed its financial restructuring and emerged from protection under Chapter 11 of the United States Bankruptcy Code.
“With our financial restructuring now behind us, we are emerging from Chapter 11 with a strengthened balance sheet and enhanced financial flexibility that positions [us] for continued success in the markets in which we operate,” said Michael Byars, president and CEO of Greenville, S.C.-based Bi-Lo, which operates 207 supermarkets in South Carolina, North Carolina, Georgia and Tennessee, and employs about 15,100 associates. “Our lean capital structure and more focused footprint will enable us to continue putting our customers first and exceeding their expectations every time they visit our stores.”
According to Byars, “Much of our success in emerging from Chapter 11 can be attributed to our steadfast focus on providing our customers unsurpassed savings without sacrifice,” including weekly specials, Price Lock items and the availability of the fuelperks! gas discount program.
Through financial restructuring, the grocer has reduced its debt by about $60 million. Dallas-based Lone Star Funds, which made a $150 million equity investment in the company, remains majority owner. Additionally, Credit Suisse gave $200 million in committed term loan financing and General Electric Capital provided a $150 million revolving credit facility.
The U.S. Bankruptcy Court for the District of South Carolina confirmed Bi-Lo’s reorganization plan in late April.