MONTVALE, NJ - Just when you thought you’ve heard the last of the A&P bankruptcy saga, new documents have surfaced that suggest the company’s struggles may continue on through 2017.
In court papers filed recently with a U.S. Bankruptcy Court in White Plains, NY, the company’s lawyers asked Judge Robert Drain to extend its bankruptcy through 2017 to give it increased time to plan distribution of the nearly $1 billion of proceeds from its liquidation to creditors. If approved, this would extend A&P’s “exclusivity period” through January 19, 2017, according to The Wall Street Journal.
Companies that file for chapter 11 bankruptcy are automatically awarded exclusivity, the report explains, which shields them from creditors or outsiders who would look to interfere with the process.
As we’ve covered in the past, A&P originally filed for bankruptcy in July 2015, when it began the lengthy process of liquidating its business of 296 supermarkets and other stores under brands including Waldbaum's, SuperFresh, Pathmark, Food Basics, The Food Emporium, Best Cellars, and A&P Liquor. In the recent filings, the company reported its several auctions and sales have garnered about $910 million and saved more than 18,000 jobs.
Next for A&P? The company will be looking to finalize the sale of its last remaining assets—16 liquor stores, while figuring out its creditor-repayment plan, Wall Street Journal says. While still subject to a creditor vote and final legal approval, A&P’s lawyers shared that the company has already paid off $300 million of its secured debt.
A hearing on the exclusivity extension was slated for the middle of this month.
