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A&P files reorganization plan
A&P's parent company reached an agreement on employee concessions and filed a reorganization plan Monday with the U.S. bankruptcy court.
The plan, first announced earlier this month, would allow Montvale-based Great Atlantic & Pacific Tea Co. to emerge from bankruptcy in early 2012 as a private company, with $490 million in debt and equity financing from The Yucaipa Cos., Mount Kellett Capital Management LP and investment funds managed by Goldman Sachs Asset Management LP.
The company filed for Chapter 11 bankruptcy protection in December 2010. As of September, it reported assets of $2.34 billion and liabilities of $3.58 billion.
The investment provides "the best chances of reorganizing successfully," the supermarket company said in court papers.
The reorganization plan includes concessions from the United Food and Commercial Workers Union, which represents almost 12,000 workers at A&P's stores. Those include the Pathmark, Waldbaum's, Food Emporium, Food Basics and SuperFresh stores.
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