Southeastern Grocers’ Reorg Plan Confirmed by Court

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Southeastern Grocers’ Reorg Plan Confirmed by Court

Southeastern Grocers’ Reorg Plan OK’d by Court
After emerging from bankruptcy, Southeastern Grocers expects to operate more than 575 stores under its various banners

According to Southeastern Grocers LLC (SEG), the U.S. Bankruptcy Court for the District of Delaware has confirmed its amended prepackaged Chapter 11 bankruptcy plan. SEG expects to complete its financial restructuring process and emerge from Chapter 11 in the coming weeks, after the conditions of the plan are satisfied.

As previously reported, the plan aims to reduce overall debt levels by about $600 million, including $522 million of debt exchanged for equity in the reorganized company, and bolster the SEG’s balance sheet, enabling it to invest in the business to further support its financial health and long-term success.

“We are delighted with the court’s swift approval, which marks a major milestone in the transformation and correction of our business,” said Anthony Hucker, president and CEO of Jacksonville, Fla.-based SEG. “This confirmation paves the way for us to emerge as a strong, viable business that is well positioned to succeed in the competitive retail market.”

Added Hucker, “We’re rooted in our purpose and now firmly on our path to success. We’re eager to show our customers how far we’ve come – and how far we’re going – as we emerge from this process.”

The retailer continue to operate more than 575 stores under the Bi-Lo, Fresco y Más, Harveys Supermarket and Winn-Dixie banners. SEG’s grocery stores, liquor stores and in-store pharmacies are located in Alabama, FloridaGeorgiaLouisianaMississippiNorth Carolina and South Carolina.

The company’s advisors in this process are Weil, Gotshal & Manges LLP (legal counsel), Evercore (investment banker) and FTI Consulting Inc. (restructuring advisor).

Additional information about SEG’s restructuring efforts are available here.


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