March 23, 2009
GREENVILLE, S.C. (AP) -- Southern grocery chain Bi-Lo has filed a voluntary petition for bankruptcy protection to address an upcoming debt maturity.
The company filed for Chapter 11 bankruptcy relief on Monday in the United States Bankruptcy Court, District of South Carolina.
Details of the credit agreement terms were not immediately available but the company said it has met all the loan's terms so far.
Bi-Lo management said in a statement that in a normal credit environment it would expect to refinance the loan on "reasonable terms in the ordinary course of business" as its maturity date approaches. But the company determined it needed to file for bankruptcy protection to continue operating because of the current tight credit market.
Bi-Lo, based in Mauldin, S.C., operates 215 supermarkets in South Carolina, North Carolina, Georgia and Tennessee.
(Copyright 2009 by The Associated Press. All Rights Reserved.)