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Bi-Lo, LLC, which recently filed for Chapter 11 bankruptcy, has received interim court approval of a revised debtor-in-possession (DIP) financing facility of $125 million from GE Capital.
"Over the course of the past week, we have evaluated several DIP financing proposals from multiple lenders,” noted Bi-Lo president and CEO Michael Byars. “The revised agreement we have reached with GE Capital provides us with more liquidity on better overall terms than originally proposed.”
One of the other proposed lenders was the chain’s former parent company, Dutch retail conglomerate Ahold, which reportedly offered $35 million in DIP financing. Ahold is still guarantees numerous leases for Bi-Lo locations, a lawyer representing Ahold recently told the Greenville, S.C. News.
Byars added: "While Bi-Lo continues to have significant operational momentum and intends to fund operations primarily through its cash on hand and cash generated from operations, this interim DIP financing further strengthens the company's financial position.”
Mauldin, S.C., BI-LO operates 215 supermarkets in South Carolina, North Carolina, Georgia and Tennessee, and employs about 15,500 people.