BI-LO Completes Financial Restructuring
May 13, 2010
Company Emerges with Strengthened Balance Sheet and Enhanced Financial Flexibility
GREENVILLE, SC – May 12, 2010 – BI-LO, LLC and certain affiliates (the Company or BI-LO) today announced that it has successfully completed its financial restructuring and emerged from protection under Chapter 11 of the United States Bankruptcy Code.
Today is a great day for BI-LO, our Teammates and our loyal customers, said Michael Byars, President and Chief Executive Officer of BI-LO. With our financial restructuring now behind us, we are emerging from Chapter 11 with a strengthened balance sheet and enhanced financial flexibility that positions BI-LO for continued success in the markets in which we operate. Our lean capital structure and more focused footprint will enable us to continue putting our customers first and exceeding their expectations every time they visit our stores. We sincerely appreciate the support of our hard-working and dedicated Teammates, our loyal customers and other stakeholders throughout this process and we are excited to move forward as a financially stronger company.
Much of our success in emerging from Chapter 11 can be attributed to our steadfast focus on providing our customers unsurpassed savings without sacrifice, Mr. Byars added. Our weekly specials and Price Lock items offer tremendous value, and our fuelperks!® program has saved consumers more than $25 million at the gas pump since October 2008. Further, we are committed to offering the freshest products possible in our bakery, produce, deli and meat departments, all with friendly, helpful service from more than 15,000 dedicated Teammates.
As previously announced, BI-LO’s Plan of Reorganization was confirmed by the United States Bankruptcy Court for the District of South Carolina on April 29, 2010. BI-LO has met all closing conditions of its Plan of Reorganization and Plan of Arrangement. Through its financial restructuring, BI-LO has reduced its funded indebtedness by approximately $60 million. Lone Star Funds made a $150 million equity investment in BI-LO and remains majority owner. In addition, Credit Suisse has provided $200 million in committed term loan financing and General Electric Capital has provided a $150 million revolving credit facility.
Additional information about BI-LO’s Chapter 11 case and access to Court documents can be found on http://www.kccllc.net/BI-LO.
About BI-LO
BI-LO, headquartered in Greenville, S.C., operates 207 supermarkets in South Carolina, North Carolina, Georgia and Tennessee, and employs approximately 15,100 people. The company sponsors the annual BI-LO Charity Classic golf tournament each June. The BI-LO Charity Classic has raised more than $48 million in the past 26 years, with grant funding focused on children’s charities, hunger relief and education.
