BI-LO confirms plan after debt-maturity Chapter 11
BI-LO entered Chapter 11 on March 23, 2009, then used the case to keep a regional grocery platform operating while addressing a debt maturity and more than $150 million owed to GE Capital. The debtor operated more than 200 BI-LO and Super BI-LO stores across South Carolina, North Carolina, Georgia, and Tennessee from Greenville, South Carolina; its first-day cash-collateral motion said access to collateral was needed to pay employees, satisfy critical vendors, and preserve going-concern value source filing source filing source filing.
The court confirmed the Fourth Amended Plan on April 30, 2010, over any unresolved objections, locking in a reorganization backed by the Creditors' Committee, Ahold, C&S, Lone Star-related parties, and an investor-led recapitalization. The plan authorized new ABL and term facilities, cancelled old equity, issued 100% of new common units to the investor in exchange for a $150 million cash/term-loan contribution, created a Creditors' Trust, and amended the C&S supply relationship, including a $15 million release payment and weekly sublease savings. The plan became effective on May 12, 2010, and the debtors funded a $40 million unsecured creditors' fund for the trust source filing source filing source filing.