Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Food & Staples Retailing

Great Atlantic & Pacific Tea Chapter 11 Petition Filed

Privately-held Great Atlantic & Pacific Tea (aka A&P) and 17 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of New York, lead case number 15-23007. The Company, which is the nation's oldest leading supermarket and food retailer, is represented by Ray C. Schrock and Garrett A. Fail of Weil, Gotshal & Manges. According to documents filed with the Court, "The Debtors have commenced these Chapter 11 Cases to implement a comprehensive asset sales strategy (the 'Sale Strategy'). The Sale Strategy is the foundation of these Chapter 11 Cases and is critical to maximizing recoveries for all creditors and preserving thousands of jobs. The Sale Strategy has been developed with great care, thought and planning. Unlike other retail businesses whose demise is predetermined even before a chapter 11 filing, the Debtors have developed the Sale Strategy to drive value and offer the best opportunity to preserve as many jobs and accomplish as many going concern sales of their stores as possible. To that end, the Debtors have secured a fully-committed Junior Lien DIP Facility (the 'Junior Lien DIP Facility) in the amount of $100 million from Fortress Credit Group ('Fortress')." Great Atlantic & Pacific Tea emerged from a previous Chapter 11 filing in March 2012. The Company's most recent bankruptcy petition indicates total assets of approximately $1.6 billion.

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