You haven't heard the last of the A&P bankruptcy saga, it seems. New documents have surfaced that suggest the struggles may go on through 2017.
In a court filing made with the U.S. Bankruptcy Court in White Plains, NY, A&P's lawyers asked Judge Robert Drain to extend its bankruptcy through 2017, in an effort to increase the time it has to distribute the nearly $1 billion of proceeds from its liquidation to its 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 awarded exclusivity automatically, the report explains, which shields them from creditors or other outside parties who would look to interfere with the process.
As we’ve covered in prior articles, A&P filed for its most recent bankruptcy in July 2015, beginning the 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 over a several month period. In these newly introduced filings, the company reported it has garnered have about $910 million and saved more than 18,000 jobs through its various auctions and sales.
Next on A&P's agenda as it looks to wrap up its bankruptcy proceedings? Finalize the sale of its last remaining assets—16 liquor stores, for one, while also figuring out its creditor-repayment plan, Wall Street Journal says. 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.
