A&P's $800M DIP Facility OK'd
The U.S. Bankruptcy Court for the Southern District of New York has approved the Great Atlantic & Pacific Tea Co. Inc. (A&P)’s $800 million debtor-in-possession (DIP) financing provided by JPMorgan Chase & Co. Of the total DIP facility, a $350 million term loan will be immediately funded. The Montvale, N.J.-based company said that the court has green-lighted its request for “first-day orders,” among them immediate authority to pay associates and continue providing them with health and other employee benefits, authority to pay pre-petition obligations to key vendors and suppliers according to terms going forward, and authority to keep meeting all of its pre-bankruptcy obligations to customers, including existing loyalty and promotional programs.
The court also entered various other orders to ensure that A&P will be able to run smoothly during the benkruptcy process. The company’s 395 stores in eight states and the District of Columbia are still open and operating as usual. Its banners are A&P, Waldbaum’s, Pathmark, Best Cellars, The Food Emporium, Super Fresh and Food Basics.
A&P revealed Dec. 12 that it had filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code with the U.S. Bankruptcy Court for the Southern District of New York to restructure the company’s debt and reorganize its business.