BI-LO Receives Court Confirmation for Plan of Reorganization

GREENVILLE, S.C., April 29 /PRNewswire/ -- BI-LO, LLC and certain affiliates (the "Company" or "BI-LO") today announced that the United States Bankruptcy Court for the District of South Carolina (the "Court") confirmed the Company's Plan of Reorganization, dated April 13, 2010 (the "Plan"). BI-LO expects to emerge from bankruptcy in May.

As previously disclosed, the Plan is sponsored by Lone Star Funds ("Lone Star") and includes a $150 million new equity investment by Lone Star and $200 million in committed term loan financing from Credit Suisse. In addition, GE Capital will provide for a $150 million revolving credit facility for BI-LO post-emergence to fund working capital and other normal business needs. The company expects to have between $40 and $50 million of cash borrowings on the revolving credit facility immediately after emergence.  

"We are very pleased to have reached this major milestone in BI-LO's history," said Michael Byars, President and Chief Executive Officer of BI-LO. "This is a great achievement for BI-LO and is a reflection of the Company's current performance and our commitment to our customers, suppliers, and Teammates. BI-LO will emerge from bankruptcy financially stronger, with less debt, and as a more competitive company in the marketplace."

Mr. Byars continued, "With our improved balance sheet, we will continue our commitment to the communities we proudly serve and provide our customers with the lowest possible pricing to deliver the best overall value, the freshest products and the same top quality brands they have come to expect, all with friendly, helpful service from our 15,000 Teammates. On behalf of the entire management team, I would like to thank our customers, Teammates, and suppliers for their ongoing support as we continue to build on the momentum that began in 2009 and has continued through the first four months of 2010."

Additional information about the restructuring is available on the Company's website www.bi-lo.com.  For access to Court documents and other general information about the Chapter 11 case, please visit www.kccllc.net/BI-LO.

About BI-LO

BI-LO, headquartered in Mauldin, S.C., operates 207 supermarkets in South Carolina, North Carolina, Georgia and Tennessee, and employs approximately 15,100 people. The company sponsors the annual BI-LO Charity Classic golf tournament each June. The BI-LO Charity Classic has raised more than $48 million in the past 26 years, with grant funding focused on children's charities, hunger relief and education.

SOURCE BI-LO, LLC