PHOENIX -- Megafoods Stores here last week told SN it expects to emerge from Chapter 11 bankruptcy protection in mid- to late October -- a month later than it had previously anticipated -- because of the need to resolicit some of its creditors after a change in its reorganization plan.
n exchange for a 10% nonvoting stake in Megafoods' ownership, plus other considerations.
That agreement triggered changes in the reorganization plan, prompting the U.S. Bankruptcy Court here to order that Megafoods resubmit the plan to some of its creditors for a new vote, William J. White, Megafoods president and chief executive officer, told SN. White said it will probably take until mid-October for the resolicitation process to end, after which the company would have to return to U.S. Bankruptcy Court here to get final approval of its reorganization, which would enable it to emerge from Chapter 11.
In a court hearing last week, Megafoods rejected two leases in Arizona, although one site will be replaced with a former Safeway store that Megafoods expects to acquire, White said. He added that he expects to reject three leases in Texas and replace one of those stores with a former Kroger unit whose lease had been rejected by previous Megafoods executives.