Court accepts A&P's DIP facility
MONTVALE, N.J. — Bankrupt grocer A&P has announced that the U.S. Bankruptcy Court for the Southern District of New York has approved the $800 million debtor-in-possession financing provided by JPMorgan Chase. Of the total DIP facility, a $350 million term loan immediately has been made available.
As previously reported, A&P filed for bankruptcy on Sunday and will keep its 395 stores open and operational during the proceedings.
In addition, the court granted A&P's motion to approve its request for "first day orders," including:
- Immediate authority to pay employees' salaries and wages and to continue providing health and other employee benefits to them;
- Authority to pay certain pre-petition obligations to critical vendors and suppliers in the ordinary course; and
- Authority to continue to satisfy all of its pre-petition obligations to customers, including existing loyalty and promotional programs.