Penn Traffic gets OK to pay exit facility fees, exclusivity extension

By Jeff Pines

Washington, Jan. 19 - Penn Traffic Co. received court approval to pay commitment fees for a proposed exit facility.

The order was filed with the U.S. Bankruptcy Court for the Southern District of New York on Wednesday.

The Syracuse, N.Y.-based grocery store chain will pay General Electric Capital a $300,000 fee for a revolver, $20,000 for a term loan and $100,000 to Kimco Realty Corp. for a supplemental real estate facility.

More details on the financing were not available.

In a separate filing on Wednesday, the court agreed to extend the exclusive right of the company to file a reorganization plan to March 25 from Jan. 25 and its exclusive period to solicit votes to May 25 from March 26.

In paperwork previously filed with the court, Penn Traffic said it needs the extra time to work with its creditors and to confirm a consensual reorganization plan.

The company also received court approval to hire Robert Dimond as its chief financial officer. Dimond has 18 years of experience in accounting and finance, most of it in the food retail industry, the company said.

Penn Traffic filed for bankruptcy on May 30, 2003. Its Chapter 11 case number is 03-22945.

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