BI-LO to Evaluate DIP Financing Proposals from Multiple Lenders
Operations to Continue Uninterrupted
Court Authorizes Payment of All Employee Wages and Benefits and All Post-Petition Supplier Obligations
GREENVILLE, S.C., March 27 /PRNewswire/ -- BI-LO, LLC and certain affiliates (the "Company") today announced the approval of key "first day" motions by the United States Bankruptcy Court for the District of South Carolina (the "Court") that will allow the Company's operations to continue uninterrupted through the Chapter 11 financial restructuring.
The Court approval gives the Company interim authority to use its cash on hand and cash generated from operations to continue meeting its normal business obligations, including paying employee wages and benefits without interruption and paying suppliers for all post-petition purchases of goods and services in the ordinary course of business. Additionally, today's ruling grants BI-LO approval to continue honoring its customer policies and programs, including gift cards, returns/exchanges, promotions, and loyalty programs through the Company's financial restructuring.
"The Court's prompt approval of these key motions is a positive step toward a successful restructuring," said Michael Byars, President and Chief Executive Officer of BI-LO. "We look forward to continuing to operate without interruption while implementing strategies to enhance our financial flexibility. For our valued customers and suppliers, we expect it will remain business as usual at BI-LO. We remain committed to offering our customers the same top quality brands and high quality fresh foods, all at a great value. We look forward to working with all of our constituencies to reach mutually acceptable resolutions and to exit bankruptcy as quickly as possible."
Over the course of the coming week, BI-LO will evaluate several DIP financing proposals it has recently received from multiple lenders. The Court has scheduled a hearing on Friday, April 3, 2009 to approve the financing proposal the Company determines is most favorable. Once approved, the DIP financing will be used to support the Company's cash on hand and cash generated from ongoing operations.
Mr. Byars continued, "We are pleased to be in the fortunate position to have multiple DIP financing proposals to evaluate. We are confident in the strength of our business and look forward to working with the Court and our potential lenders to come to an agreement that is in the best interests of our customers, employees, suppliers and communities."
As previously announced, BI-LO filed voluntary Chapter 11 petitions in the United States Bankruptcy Court for the District of South Carolina on March 23, 2009.
Additional information about the restructuring is available on the Company's website www.bi-lo.com. For access to Court documents and other general information about the Chapter 11 case, please visit www.kccllc.net/BI-LO.
About BI-LO
Headquartered in Mauldin, S.C., BI-LO operates 215 supermarkets in South Carolina, North Carolina, Georgia and Tennessee and employs approximately 15,500 people.
SOURCE BI-LO, LLC
