Bi-Lo will continue to operate under a restructuring plan the company has filed with U.S. Bankruptcy Court in Greenville, S.C.
Bi-Lo would receive a $350 million cash infusion funded by a $150 million new equity investment by owner Lone Star Funds and $200 million in committed term loan financing, according to a filing.
In addition, the Lone Star proposal will provide for $150 million to fund working capital and other normal business needs, the filing said.
The company noted that 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.
“Today marks a significant milestone and an important next step in our restructuring efforts,” said Michael Byars, chief executive officer of Bi-Lo.
For more details, see tomorrow’s Chattanooga Times Free Press
Mike Pare, the deputy Business editor at the Chattanooga Times Free Press, has worked at the paper for 27 years. In addition to editing, Mike also writes Business stories and covers Volkswagen, economic development and manufacturing in Chattanooga and the surrounding area. In the past he also has covered higher education. Mike, a native of Fort Lauderdale, Fla., received a bachelor’s degree in communications from Florida Atlantic University. he worked at the Rome News-Tribune before ...
Chapter 13 is not going to solve the problem with Bi-Lo. It's the shady board of directors still clinging on to their jobs with every little shenanigan they can com up with.
It's not over for "Bi-Loss" and we shall see more in the future.
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