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 / Bonds

Southeastern Grocers Chapter 11 Petition, Plan Filed

Southeastern Grocers (a/k/a Winn-Dixie, BI-LO and Harveys Supermarkets) and more than 25 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 18-10700. The Company, which operates retail grocery store chains, is represented by Daniel J. DeFranceschi of Richards, Layton & Finger. The filing was initiated to implement Southeastern Grocers restructuring support agreement (RSA), which the Company entered into on March 15, 2018 with a group of creditors collectively holding 80% of its Senior PIK Toggle Notes and its private equity sponsor. The RSA provides for a comprehensive financial restructuring that will position the Company for "long-term financial health." Concurrent with the Chapter 11 petition, the Company also filed a Joint Prepackaed Chapter 11 Plan of Reorganization and related Disclosure Statement, which incorporates the RSA. The Disclosure Statement notes, "The Restructuring is expected to leave the Company with its balance sheet de-levered and better positioned to compete in the grocery retail industry. The Restructuring is also expected to enhance the Company's long-term growth prospects and to allow the Company's leadership team to increase its focus on operational performance and value creation." Southeastern Grocers has secured 100% committed exit financing in the form of a senior secured six-year term loan facility in the original principal amount of $525 million and an asset-based lending revolving credit facility. Anthony Hucker, president and C.E.O., comments, "This pre-packaged, court-supervised financial restructuring process provides for a clear and expedited path to put SEG in the best position to serve our communities and succeed in the competitive retail market in which we do business. We are extremely pleased that this process continues to proceed quickly and as planned. With each key milestone reached, we move closer to emerging and making Southeastern Grocers into a true success story for our associates, our customers and the communities we serve." Winn-Dixie Stores emerged from a previous Chapter 11 filing in November 2006; and Bi-Lo emerged from a previous Chapter 11 filing in May 2010.

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