Bi-Lo receives court approval for reorganization plan

GREENVILLE, S.C. Bi-Lo's plan for reorganization was confirmed by the U.S. Bankruptcy Court of South Carolina, the regional supermarket chain said Friday.

As previously disclosed, the restructuring plan is sponsored by Lone Star Funds and includes a $150 million new equity investment by Lone Star and $200 million in committed term loan financing from Credit Suisse. In addition, GE Capital will provide for a $150 million revolving credit facility for Bi-Lo post-emergence to fund working capital and other normal business needs. The company expects to have between $40 and $50 million of cash borrowings on the revolving credit facility immediately after emergence.

"We are very pleased to have reached this major milestone in Bi-Lo's history," said Michael Byars, Bi-Lo president and CEO. "This is a great achievement for Bi-Lo and is a reflection of the company's current performance and our commitment to our customers, suppliers, and Teammates. Bi-Lo will emerge from bankruptcy financially stronger, with less debt, and as a more competitive company in the marketplace."

Additional information about the restructuring is available on the company's Web site 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.