CHANDLER, Ariz. — Bashas’ here hopes to emerge from Chapter 11 bankruptcy by July — if it can obtain better interest rates than are available now on the bank loans it is lining up, Michael McGrath, the chain's bankruptcy attorney, told SN on Friday after a bankruptcy court meeting.
Bashas' is working with a couple of investment banking firms to secure financing that would allow the chain to emerge, he said, "and we had hoped we could complete the process by May or June. But given the volatility in the capital markets, we thought it would be more prudent to wait until July or later to see if the market improves."
According to McGrath, the bankruptcy court judge took Bashas' suggestion and scheduled a confirmation hearing for July 22, "and he encouraged us to try to work out an agreement and to continue to pursue the takeout financing option.”
"At one time that option didn't seem feasible, but at this point all of Bashas' lenders are delighted with that option — it's now just a matter of pricing the deal at the right rate once the capital markets stabilize, and Bashas' is willing to wait.”
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