Bashas' in Talks for Bank Financing

CHANDLER, Ariz. — Bashas' here said Thursday it is in the process of securing new financing that could allow it to emerge from Chapter 11 bankruptcy protection by August.

In a letter to employees, Edward N. Basha 3rd, senior vice president, said the company has been negotiating for the past two weeks with two investment banking firms — which he did not name — both of which are interested in arranging new financing for the company.

According to Basha, the financing would fully repay the chain's lenders immediately in cash in the full amounts owed and allow the company to pay its unsecured creditors at a faster rate than previously anticipated, thereby enabling Bashas' to emerge from Chapter 11.

"We credit this new financing to initiatives we have undertaken [that] are reshaping our operations and resulting in positive cash flows; [and to] a significant improvement in the capital markets during the past few months, including a renewed willingness from investment banks to arrange for new financing," Basha wrote.

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