TAMPA, Fla. -- Kash n' Karry Food Stores here said last week it has completed its debt restructuring and has emerged from its court-assisted financial reorganization as a public company. The company said it anticipates that its common stock will begin trading within the next two weeks on the Nasdaq national market. Kash n' Karry filed a prepackaged Chapter 11 plan of reorganization with the U.S. Bankruptcy Court for the District of Delaware in November. That plan was confirmed by the court Dec. 12. Tony Petrillo, acting chairman and chief executive officer, told SN last week he expects to step down within six months, although he said he'll remain on the company's board as long as he's needed. Under the company's plan, Kash n' Karry will reduce its debt burden of $350 million by about one-third; reduce annual interest expense by more than one-third, or about $12 million; lower its indebtedness on senior fixed rate and senior floating rate notes by $105 million, and convert its subordinated debentures into equity of $10 million to purchase newly issued stock. "This finalizes our debt restructuring and dramatically improves the company's financial condition," Petrillo said. "Our improved capital structure, which reduces our debt and cuts our interest expense, enhances our ability to invest in the company's future. Coupled with steady ongoing sales and an improved expense control, this reorganization leaves us a stronger and more competitive company." Kash n' Karry operates 99 supermarkets and 33 liquor stores in west-central Florida, with annual sales of $1.06 billion.
