Great Atlantic & Pacific Tea Co., the supermarket company known as A&P, won approval for a plan to restructure and exit bankruptcy with financing from an investor group that includes Ron Burkle’s Yucaipa Cos.
A&P, which also operates under the names Food Emporium and Pathmark, obtained approval from U.S. Bankruptcy Judge Robert Drain in White Plains, New York, at a court hearing today. The company filed for bankruptcy in December 2010.
A&P’s plan is funded in part with $490 million in debt and equity financing from the investor group, according to court papers. A&P announced the financing commitment in November from Yucaipa, Mount Kellett Capital Management and investment funds managed by Goldman Sachs Asset Management.
A&P, based in Montvale, New Jersey, operates 336 stores and has about 36,000 employees, according to its website. The company had total assets of $2.34 billion and liabilities of $3.58 billion as of Sept. 10, according to a court filing.
The case is In re The Great Atlantic & Pacific Tea Co. Inc., 10-24549, U.S. Bankruptcy Court, Southern District of New York (White Plains).