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MILAN, Ill. -- Eagle Food Centers, Inc., which owns and operates 60 supermarkets in Illinois and Iowa, announced today that it has received final Court approval of the Company's $40 million debtor-in-possession (DIP) financing facility.
The DIP facility calls for Congress Financial Corporation, which has provided the company's revolving credit facility since 1995, to provide Eagle with $40 million in post-petition financing to continue funding obligations to employees and suppliers, as well as other day-to-day operations of the company.
Representatives of the Official Committee of Unsecured Creditors were actively involved in recent negotiations and supported the DIP facility at today's hearing.
"The DIP financing facility will maintain an uninterrupted flow of merchandise to our stores and help support ongoing vendor relationships," said Robert J. Kelly, c.e.o. and president. "We appreciate the support of our suppliers, employees and other major constituents and know that their cooperation has already contributed to improvements in our business in the few weeks since the filing."
The Company filed its voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the Northern District of Illinois on April 7, 2003. The Company is also continuing to focus its resources on maintaining the quality of its operations while they explore sale alternatives.
Eagle operates 59 Eagle Country Markets and one Bogo's Food and Deals. The company employs approximately 3,550 people at its stores and its headquarters and central distribution facility in Milan, Illinois.