Drain shot down several objections to the plan, Last Monday the company Great Atlantic & Pacific Tea Co’s has received the approval to their exit bankruptcy plan by a judge in a spearheaded pact around $490 million financing pact.
WHITE PLAINS, N.Y. -(Dow Jones)- A judge on Monday approved Great Atlantic & Pacific Tea Co.’s (GAPTQ) plan to exit bankruptcy proceedings as a leaner grocery chain by both store count and cost of labor, more than a year after the owner of A&P and other supermarkets filed for Chapter 11.
Judge Robert D. Drain of U.S. Bankruptcy Court in White Plains, N.Y., confirmed the proposal, spearheaded by a $490 million financing pact with supermarket mogul Ron Burkle’s Yucaipa Cos. that A&P said offered the only viable alternative to a likely liquidation.
Drain shot down several objections to the plan, including from unsecured creditors who as recently as two weeks ago thought they’d be recovering some money but will now get nothing, at least for now.
A&P first came to the court seeking confirmation on Feb. 6, but a litany of objectors and an exit-financing package that nearly fell apart led to weeks of tense shuffling to keep the plan alive. After scaling down the deal led by J.P. Morgan Chase & Co. (JPM) and Credit Suisse Group AG (CS, CSGN.VX) to $645 million from $750 million, A&P asked Drain to approve a modified plan that treats senior lenders substantially the same but completely wipes out what would have been a $40 million pool of cash for unsecured creditors. Read more…
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