Bi-Lo officials said the grocery chain has received cash infusions and is filing for bankruptcy reorganization.
Food Lion is no longer acquiring Bi-Lo as was announced earlier, officials said.
The company filed its plan of reorganization and disclosure statement with the United States Bankruptcy Court for the District of South Carolina. The plan is sponsored by Lone Star Funds and includes a $350 million cash infusion, funded by a $150 million new equity investment by Lone Star and $200 million in committed term loan financing. In addition, the Lone Star proposal will provide for a $150 million ABL facility for Bi-Lo post-emergence to fund working capital and other normal business needs.
The company noted that the official unsecured creditors committee has submitted a competing plan of reorganization and disclosure statement with the court. Both the plan sponsored by Lone Star and the plan submitted by the creditor’s committee contemplate Bi-Lo continuing to operate as a going concern.
“Today marks a significant milestone and an important next step in our restructuring efforts,” said Michael Byars, president and chief executive officer of Bi-Lo. “The two plans submitted before the court create additional choice for Bi-Lo’s creditors and encourage competition that we expect will maximize the value of the estate for the benefit of the company and its stakeholders. Further, the competing plans demonstrate the significant interest in our company and are a testament to our strong operational performance over the past several months.”
Mr. Byars added, “I’d like to thank all of our teammates for their continued hard work, dedication and commitment to Bi-Lo. We look forward to working with all of our creditors and the court to reach an agreement that will enable us to emerge from this process as expeditiously as possible. As we work toward a successful restructuring, we will continue to provide our customers and communities with the freshest products and the same top quality brands they have come to expect.”