GREENVILLE, S.C. — Ahold has filed court papers urging U.S. Bankruptcy Court here to deny a $100 million proposed financing package for Bi-Lo, offering its former division a $35 million loan instead. Ahold, which sold Bi-Lo to Lone Star Holdings in 2005 and remains a landlord for the retailer, said that GE Financial’s $100 million lending package would unfairly put lenders ahead of landlords with regard to collecting on pre-petition debts.
In a related development, Bi-Lo has requested that the court approve a $21 million emergency payment to C&S Wholesale Grocers, its largest supplier. This payment — which would ensure continued service from C&S, which was owed $16 million upon the bankruptcy petition — would be paid for from the $100 million proposed financing package. The court is expected to rule on the financing in a hearing Friday.
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