PrintPrintGE Capital will provide $125 million to Bi-Lo LLC as part of an interim debtor-in-financing agreement approved Friday by the U.S. Bankruptcy Court for the District of South Carolina.
Staff Report
Published April 6, 2009
GE Capital will provide $125 million to Bi-Lo LLC as part of an interim debtor-in-financing agreement approved Friday by the U.S. Bankruptcy Court for the District of South Carolina.
“We are pleased to have reached this agreement and to have received interim court approval to access this DIP financing,” said Michael Byars, president and CEO of Bi-Lo. “Over the course of the past week, we have evaluated several DIP financing proposals from multiple lenders. The revised agreement we have reached with GE Capital provides us with more liquidity on better overall terms than originally proposed.
“While Bi-Lo continues to have significant operational momentum and intends to fund operations primarily through its cash on hand and cash generated from operations, this interim DIP financing further strengthens the company’s financial position. We remain committed to offering our customers the same top quality brands and high quality fresh foods, all at a great value,” Byars said.
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.
On March 27, the bankruptcy court ruled that Bi-Lo will be able to continue operations at its 215 grocery stores and to pay wages, salaries and benefits for its 15,500 employees as it goes through financial restructuring.
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