COLUMBIA, S.C. — Creditors for Bi-Lo are urging the retailer to get moving on a plan of reorganization, or they will file one themselves.
In papers filed in U.S. Bankruptcy Court here this week, creditors and term lenders asked the court to reject Bi-Lo’s motion to extend its deadline for filing an exclusive plan and filed a cross-motion that would permit them to file a joint plan of reorganization.
A hearing is scheduled for Sept. 17 to consider Bi-Lo’s request for an extension. An extension would give Bi-Lo until Oct. 19 to file an exclusive reorganization plan, and would extend the acceptance period until Dec. 18.
Calling the bankruptcy proceedings “chaotic and adversarial,” creditors argued that Bi-Lo’s primary owner, Lone Star Holdings, has delayed taking action to protect its equity interest in the company. A Bi-Lo spokesman wasn’t immediately available for comment.
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