Tops Markets’ Plan to Emerge From Bankruptcy Approved by Court

Nov. 8, 2018
(John Hickey/News file photo)

Tops Markets is on the verge of emerging from bankruptcy, after gaining court approval of its plan to restructure the supermarket chain’s business.

The approval of Tops’ restructuring plan by a U.S. Bankruptcy Court judge on Thursday signals that the grocer’s nine-month trek through bankruptcy is about to end, with a slimmed-down but still debt-laden business emerging to compete against the likes of Wegmans and Walmart, Aldi and Save-a-Lot.

Tops said it expects to complete its emergence from bankruptcy “shortly.”

“We are pleased to receive the Court’s approval of our Plan and are poised to emerge from this process an even stronger and more competitive company,” said Frank Curci, Tops’ CEO.

The restructuring will reduce Tops’ interest payments and shed more than half of its $715 million debt load. It also will leave Tops under the ownership of the hedge funds and investors who held roughly $560 million in prebankruptcy borrowings that were secured by the company’s assets. Tops current management also will remain in place, with Curci staying on as CEO.
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