A&P to emerge from bankruptcy in 2012
Montvale, N.J. -- The Great Atlantic & Pacific Tea Co. said Friday that it has secured a $490 million financing package from Ron Burkle’s Yucaipa Cos., Mount Kellett Capital Management and investment funds managed by Goldman Sachs.
The combination debt and equity financing, which is subject to court approval, will allow the grocer to emerge from Chapter 11 bankruptcy protection early in 2012.
“This investment commitment is a very important step in A&P’s financial and operational turnaround,” said Sam Martin, CEO, A&P. “It positions us for a bright future with solid financial backing from sophisticated investors who know our company and industry well.”
A&P filed for Chapter 11 in December 2010. The new agreement is subject to approval by the U.S. Bankruptcy Court in Manhattan.