BI-LO files reorganization plan

Nov. 24, 2009
BI-LO LLC and certain affiliates announced that the company filed its plan of reorganization and disclosure statement November 20 with the US Bankruptcy Court for the District of South Carolina.

BI-LO LLC and certain affiliates announced that the company filed its plan of reorganization and disclosure statement November 20 with the US Bankruptcy Court for the District of South Carolina.

This plan is sponsored by Lone Star Funds and includes a $350 million cash infusion, funded by a $150 million new equity investment by Lone Star and $200 million in committed term loan financing. The Lone Star proposal will provide for a $150 million ABL facility for BI-LO post-emergence to fund working capital and other normal business needs.

The Official Unsecured Creditors Committee has submitted a competing plan of reorganization and disclosure statement with the court. Both the plan sponsored by Lone Star and the one submitted by the Creditor’s Committee contemplate BI-LO continuing to operate as a going concern.

Michael Byars, president and chief executive officer of BI-LO, said, “The two plans submitted before the court create additional choice for BI-LO’s creditors and encourage competition that we expect will maximize the value of the estate for the benefit of the company and its stakeholders. Further, the competing plans demonstrate the significant interest in our company and are a testament to our strong operational performance over the past several months.”

Additional information about the restructuring is available at www.bi-lo.com. For access to court documents and other information about the case, visit www.kccllc.net/BI-LO.

Mauldin SC-based BI-LO operates 214 supermarkets in South Carolina, North Carolina, Georgia, and Tennessee and employs approximately 15,500 people.

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