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The Great Atlantic & Pacific Tea Co.'s (A&P) plan to restructure and exit bankruptcy with financing from an investor group that includes Ron Burkle’s Yucaipa Cos. has been approved.
Judge Robert D. Drain of the U.S. Bankruptcy Court in White Plains, N.Y., confirmed the proposal that is funded in part with $490 million in debt and equity financing from the investor group, according to court papers. A&P announced the financing commitment in November from Yucaipa, Mount Kellett Capital Management and investment funds managed by Goldman Sachs Asset Management.
Montvale, N.J.-based A&P, which operates 336 stores and has about 36,000 employees, had total assets of $2.34 billion and liabilities of $3.58 billion as of Sept. 10, according to a court filing.
"The court approved our plan at [the] hearing, and we're taking the necessary steps to emerge from Chapter 11 as soon as possible," a company spokeswoman confirmed when contacted by Progressive Grocer.