PrintPrintBi-Lo's unsecured creditors withdrew a bid to purchase the Mauldin-based grocery chain through bankruptcy court this week because the term-loan lenders decided not to invest in the reorganization plan, according to court documents.
By Scott Miller
smiller@scbiznews.com
Originally published Feb. 11, 2010
Bi-Lo's unsecured creditors withdrew a bid to purchase the Mauldin-based grocery chain through bankruptcy court this week because the term-loan lenders decided not to invest in the reorganization plan, according to court documents.
That proposal had competed with a reorganization plan submitted by Bi-Lo LLC that included $150 million in new equity and $200 million in committed-term loan financing from the company’s owner, Lone Star Funds.
Bi-Lo’s 20 largest unsecured creditors are owed $36.3 million, according to court documents. The top three are C&S Wholesale Services Inc., owed $16.7 million; Pepsi Cola Co., owed $3.07 million; and Piedmont Coca-Cola Bottling, owed $2.39 million, according to court documents.
It’s unclear how the withdrawal of the creditors’ plan will affect the case moving forward. The next court hearing is scheduled for Feb. 24, and the judge granted the unsecured creditors committee co-exclusivity until Feb. 28. It’s unknown if the committee will file another reorganization plan.
Attorneys with the unsecured creditors committee and Bi-Lo were unavailable for comment.
Bi-Lo attorney George Cauthen previously said that Bi-Lo was crafting a new disclosure statement that likely would lead to changes in its reorganization plan. He could not elaborate, saying only that the new disclosure statement would be filed in mid-February and a hearing on the reorganization plan likely would be scheduled one month later.
Bi-Lo filed for bankruptcy protection in March, citing upcoming debt maturity that it was unable to refinance. Bi-Lo operates 214 stores in South Carolina, North Carolina, Tennessee and Georgia and employs nearly 14,000 people, according to court records.
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