Bi-Lo gets court OK to operate as normal in bankruptcy

Bi-Lo LLC today said it has received court approval to operate as normal during the grocer’s bankruptcy case.

During the coming week, Bi-Lo will evaluate several financing proposals from lenders, according to a company statement.

The U.S. Bankruptcy Court for the District of South Carolina has set an April 3 hearing to approve a financing arrangement. Until then, the company plans to operate during its Chapter 11 bankruptcy using cash on hand and cash from operations.

The ruling by bankruptcy Judge Helen E. Burris allows Bi-Lo to also sell prescriptions, sponsor athletic events, operate the BonusCard, offer coupons and accept customer returns, among other things.

“The court’s prompt approval of these key motions is a positive step toward a successful restructuring,” Michael Byars, president and chief executive, said in a statement. “For our valued customers and suppliers, we expect it will remain business as usual at Bi-Lo.”

Mauldin, S.C.-based Bi-Lo, which has 29 stores in the Chattanooga region, sought bankruptcy protection Monday.

For complete details, see tomorrow’s Chattanooga Times Free Press