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BI-LO creditors committee withdraws plan after term lenders terminate investment agreement
By Caroline Salls
Pittsburgh, Feb. 9 - BI-LO, LLC's official committee of unsecured creditors has withdrawn the plan of reorganization filed for the company's bankruptcy case in November after a term lender committee, which was the co-proponent of the plan, terminated a related investment agreement, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of South Carolina.
The committee said the informal term lenders group terminated its investment agreement obligations on Feb. 4.
As previously reported, under the committee's plan, BI-LO's non-contingent funded debt was to be reduced by more than $120 million through the conversion of a significant portion of the term lenders' claims into equity and the investment of $79.5 million in new equity capital in the reorganized company.
The new investors were led by WCM-BL Holding, LLC and BILO Recovery, LLC, both affiliates of some of the term lenders.
BI-LO, a Greenville, S.C., supermarket operator, filed for bankruptcy on March 23, 2009. The Chapter 11 case number is 09-02140.
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