Bashas' out of bankruptcy; plan of reorganization took effect Aug. 28

By Caroline Salls

Pittsburgh, Sept. 15 - Bashas' Inc.'s plan of reorganization took effect on Aug. 28, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Arizona.

The plan was confirmed on Aug. 13.

Treatment of creditors will include:

• Holders of administrative expense claims will be paid in full;

• Holders of the Grace Funding Group, LLC secured claim will be paid in full within one year of the plan effective date, with 8% interest;

• Since they voted to reject the plan, holders of bank group claims will be paid in full under 10-year and 20-year amortization tiers;

• Since they voted to reject the plan, holders of noteholder claims will be paid monthly interest and will receive $2.66 million in principal at the end of the first year and $7.1 million subsequent annual principal payments, with an expected 12-year principal payment term;

• Holders of secured tax claims will recover 10% on the plan effective date and equal payments of the balance of the claims will be made every six months through April 2014;

• Holders of priority tax claims will recover 10% on the plan effective date, with the balance to be paid over time;

• Holders of unsecured vendor claims and non-vendor unsecured claims will receive 10% on the plan effective date and 10%, with 5% interest, every six months. The balance will be paid on the three-year effective date anniversary;

• Holders of convenience claims of $5,000 or less will receive a one-time payment of 80% of their claim;

• Holders of parra litigant claims will be paid 10% upon allowance of their claims. A principal reduction will be paid every six months, and the balance will accrue interest at 5%. These claims will be fully paid on the later of the third anniversary of the effective date or liquidation of the claims; and

• Holders of pre-bankruptcy equity interests will retain their interests but will receive no distribution until all senior classes are paid in full.

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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