PrintPrintThe U.S. Bankruptcy Court for the District of South Carolina has ruled that Bi-Lo will be able to continue operations at its 215 grocery stores and pay wages, salaries and benefits for its 15,500 employees after filing for bankruptcy protection last week.
Staff Report
Published March 30, 2009
Bi-Lo will be able to continue operations at its 215 grocery stores and pay wages, salaries and benefits for its 15,500 employees after filing for bankruptcy protection last week, the U.S. Bankruptcy Court for the District of South Carolina ruled Friday.
Bi-Lo officials filed for Chapter 11 protection March 23, after the company was not able to refinance a two-year term loan for $260 million, according to bankruptcy court documents.
The first-day motions approved Friday will allow the Mauldin-based company to continue operations as it goes through financial restructuring. Bi-Lo will be able to use cash on hand and cash generated from operations to continue meeting its normal business obligations, including the uninterrupted payment of employee wages and benefits.
Bi-Lo will also be able to continue honoring its customer policies and programs, including gift cards, returns and exchanges, promotions and loyalty programs.
“The court’s prompt approval of these key motions is a positive step toward a successful restructuring,” Bi-Lo President and CEO Michael Byars said. “We look forward to continuing to operate without interruption while implementing strategies to enhance our financial flexibility. For our valued customers and suppliers, we expect it will remain business as usual at Bi-Lo. … We look forward to working with all of our constituencies to reach mutually acceptable resolutions and to exit bankruptcy as quickly as possible.”
This week, Bi-Lo will evaluate the debtor-in-possession financing proposals it has received from multiple lenders. The court has scheduled a hearing for Friday to decide whether to approve the financing proposal the company chooses. If approved, the financing will be used to support the company’s cash on hand and cash generated from ongoing operations.
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