Great Atlantic & Pacific Tea Co., the supermarket company known as A&P, said it completed a financial restructuring and emerged from bankruptcy proceedings as a private company.
A&P assembled a new management team, refurbished stores and concentrated them near core markets, negotiated a new agreement with its principal supplier, and modified collective-bargaining pacts with unions, the company said in a statement today. JPMorgan Chase & Co. and Credit Suisse arranged $645 million in exit financing, A&P said.
The company won court approval Feb. 28 for its plan to restructure and leave bankruptcy with $490 million in debt and equity financing from an investor group that includes Ron Burkle’s Yucaipa Cos. The Montvale, New Jersey-based chain operates 320 stores and has about 34,000 employees, according to its website.
“We have completed a thorough restructuring of A&P’s cost structure and balance sheet to build a strong foundation for the company’s future,” Chief Executive Officer Sam Martin said in the statement.
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. The company filed for bankruptcy in December 2010.
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).