Disgruntled secured creditors trying to block Arizona grocer’s emergence from Chapter 11By AP
Monday, August 23, 2010
Bashas’ reorganization plan appealed by creditors
PHOENIX — Disgruntled secured creditors of Bashas’ Inc. are trying to block the Arizona grocer’s emergence from bankruptcy under the current court-approved plan.
The company’s bondholders and former bankers have asked the U.S. Bankruptcy Court to delay implementation of Bashas’ Chapter 11 reorganization plan while they appeal its Aug. 13 confirmation by Judge James Marlar.
The reorganization plan proposed to repay all of the company’s debts over a three-year period. It’s scheduled to take effect on Aug. 27.
Bashas’ is prepared to repay $59 million of its $300 million in total debts during the next few weeks and begin making installment payments on the balance. The secured lenders have asked the court to rule on Wednesday on their request for a stay.
Information from: The Arizona Republic, www.azcentral.com
Tags: Arizona, North America, Phoenix, United States