Bi-Lo files plan of reorganization, disclosure statement

GREENVILLE, S.C. Bi-Lo filed on Nov. 23 its bankruptcy-exit plan with the U.S. Bankruptcy Court for the district of South Carolina.

The plan includes a $350 million cash infusion funded by a $150 million equity investment and $200 million in term-loan financing. The supermarket chain, which operates 214 supermarkets in South Carolina, North Carolina, Georgia and Tennessee, said its plan did not include an acquisition by Food Lion, which said that it is "still interested" in making a stake in Bi-Lo's operations.

"[Today] marks a significant milestone and an important next step in our restructuring efforts," said Michael Byars, president and CEO, 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."

In March, the company filed for Chapter 11 bankruptcy protection.