Bashas' lender group appeals plan confirmation order, requests stay

By Caroline Salls

Pittsburgh, Aug. 24 - A Bashas' Inc. lender group comprising Wells Fargo Bank, NA, Bank of America, NA, Compass Bank, Prudential Insurance Co. of America and related noteholders have appealed the court order confirming the company's plan of reorganization, according to a Monday filing with the U.S. Bankruptcy Court for the District of Arizona.

The lender group has asked the court to stay the Aug. 13 plan confirmation hearing pending outcome of the appeal.

According to the stay motion, the lender group provided evidence of the company's inability to achieve its projections and plan payments over the term of the plan.

"The debtors, on the other hand, failed to produce any evidence of critical elements of the plan, including, most notably, substantive consolidation of two of the debtors," the lenders said in the motion.

"With all due respect, the court confirmed the plan, despite the evidence and the plan's deficiencies, based largely on the impression that the debtors' 100% payment plan should be confirmed sooner rather than later."

Bashas', a Chandler, Ariz.-based retail grocery business, filed for bankruptcy on July 12, 2009. Its Chapter 11 case number is 09-16050.

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