Penn Traffic Delays Annual Report; Contemplates Bankruptcy

SYRACUSE, N.Y. - The Penn Traffic Company here today announced that the filing of its Annual Report on Form 10-K for the fiscal year ended Feb. 1, 2003, with the Securities and Exchange Commission would be further delayed. Penn Traffic had previously announced that it intended to file the Annual Report on or before the 15th calendar day following the SEC prescribed date.

Penn Traffic said it is considering all of its strategic alternatives, including filing a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code upon it being able to secure appropriate debtor in possession (DIP) financing. Penn Traffic is currently negotiating a DIP financing agreement that is expected to permit the company to fund its continuing operations; there can be, however, no assurance that the company will be able to secure such DIP financing.

Penn Traffic operates 212 supermarkets in Ohio, West Virginia, Pennsylvania, upstate New York, Vermont, and New Hampshire under the Big Bear, Big Bear Plus, Bi-Lo, P&C, and Quality banners. It also operates a wholesale food distribution business serving 79 licensed franchises and 66 independent operators.
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