GREENVILLE, S.C. — U.S. Bankruptcy Court has confirmed a plan of reorganization for Bi-Lo here, clearing the final hurdle for the retailer to emerge from Chapter 11 bankruptcy.
The plan, sponsored by Bi-Lo’s owner Lone Star Funds, includes a $150 million new equity investment from Lone Star and $200 million in new financing from Credit Suisse. In addition, GE Capital is providing a $150 million revolving credit facility. Bi-Lo said it expects to have between $40 million and $50 million of cash borrowings on the revolver after emerging in the coming days.
Bi-Lo filed for bankruptcy protection more than 13 months ago, citing an inability to come to terms with lenders on a new financing package as well as expenses stemming from its supply contract and some unproductive stores. The chain will reemerge from bankruptcy with 207 stores — eight fewer than when it filed.
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