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BI-LO creditors object to exclusivity extension, file cross-motion
By Alice Popovici
New York, Sept. 1 - BI-LO, LLC's official committee of unsecured creditors filed an objection to the company's motion to extend its exclusive periods to file a plan of reorganization and solicit votes on the plan, and a cross-motion seeking to terminate the company's exclusive periods, according to a Monday filing with the U.S. Bankruptcy Court for the District of South Carolina.
The company had asked the court to extend its exclusive plan-filing period to Oct. 19 and the solicitation period to Dec. 18.
In the cross-motion the committee said its intention is not to terminate the company's exclusive periods, but to enable co-exclusivity, "balancing the 'playing field' and increasing the likelihood of the [company's] successful reorganization."
"This will prevent the [company] from using their bargaining position to attempt to impose an unsatisfactory plan on unsecured creditors," the motion continued.
But if co-exclusivity is not granted, the creditors committee asks that the company's exclusivity extension request be denied, stating that BI-LO has "refused to discuss the terms of a plan of reorganization with their creditor constituencies" and "still have not engaged the committee in any plan discussions."
The company had previously asked the court extend its exclusive plan-filing period to Dec. 20 from July 21 and the solicitation period to Feb. 18, 2010 from Sept. 21. According to a June 22 motion, the company's committee of unsecured creditors and term lender committee asked the court to continue the hearing on the extension motion.
BI-LO, a Greenville, S.C., supermarket operator, filed for bankruptcy on March 23. The Chapter 11 case number is 09-02140.
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