A&P second-lien noteholders agree to support amended bankruptcy plan

By Caroline Salls

Pittsburgh, Dec. 12 - Great Atlantic & Pacific Tea Co., Inc. (A&P) requested court approval to enter into a plan of reorganization support agreement with some of the holders of its second-lien notes, according to a Dec. 12 filing with the U.S. Bankruptcy Court for the Southern District of New York.

Collectively, the consenting noteholders hold about $204 million of the second-lien notes, or 79% of the total principal value.

Under the agreement, the consenting noteholders will vote in favor of the company's plan in exchange for payment in full in cash of their second-lien note claims without the payment of any make-whole claim or prepayment premium.

As a result, A&P said it will amend its plan to provide for the allowance of $309.66 million of second-lien note claims, subject to FT 3316 registers Richard Bernstein Advisors Quality Income units

a $108,785 per day adjustment for the accrual of interest.

The total allowed second-lien note claim amount assumes a March 1 plan effective date, according to the motion.

Also under the plan amendments, up to $1.8 million of the consenting noteholders' and second-lien trustees' fees and expenses will be allowed and paid.

The company has requested a Dec. 15 hearing.

A&P, a Montvale, N.J.-based operator of supermarkets, filed for bankruptcy on Dec. 12, 2010. Its Chapter 11 case number is 10-25459.

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