Bruno's Gets Court OK on 'First Day' Motions in Bankruptcy Filing
Bruno's Supermarkets, LLC has received approval of key "first day" motions by the U.S. Bankruptcy Court for the Northern District of Alabama. The court OKed $4 million in debtor-in-possession (DIP) financing from Regions Bank. The DIP financing, together with cash generated from daily operations, will be used to meet Bruno's obligations, which include post-petition expenses, and will provide the grocer with financial stability as it restructures. The final DIP hearing is scheduled for Feb. 25.
The company also obtained court approval to continue to pay employee wages and benefits without interruption through the Chapter 11 process, and can keep in place such customer policies and programs as gift cards, returns/exchanges, promotions and loyalty programs.
"This approval helps ensure that we are able to maintain regular operations and continue paying our Teammates, meeting our obligations to our suppliers and serving our customers while we work to restructure our balance sheet and position Bruno's to compete more effectively," noted Bruno's chief restructuring officer Jim Grady.
The grocer filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Northern District of Alabama on Feb. 5.
Birmingham, Ala.-based Bruno's Supermarkets, LLC operates 23 Bruno's locations and 43 Food World stores in Alabama and the Florida Panhandle.