Update: BI-LO Gets Court Approval For Bankruptcy Plan

April 30, 2010 Update:

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."

November 2009 Update

Press release provided by Bi-Lo:

BI-LO FILES PLAN OF REORGANIZATION AND DISCLOSURE STATEMENT

Filing Represents Significant Milestone in Restructuring Process

Plan Includes $350 Million Cash Infusion

Supports BI-LO’s Continued Operations

GREENVILLE, S.C. (November 23, 2009) — BI-LO, LLC and certain affiliates (the “Company” or “BI-LO”) announced that on November 20, 2009, the Company filed its Plan Of Reorganization (the “Plan”) and Disclosure Statement (the “Disclosure Statement”) with the United States Bankruptcy Court for the District of South Carolina (the “Court”). The Plan is sponsored by Lone Star Funds and includes a $350 million cash infusion, funded by a $150 million new equity investment by Lone Star and $200 million in committed term loan financing. In addition, the Lone Star proposal will provide for a $150 million ABL facility for BI-LO post-emergence to fund working capital and other normal business needs.

The Company noted that the Official Unsecured Creditors Committee (the “Creditor’s Committee”) has submitted a competing Plan of Reorganization and Disclosure Statement with the Court. Both the Plan sponsored by Lone Star and the Plan submitted by the Creditor’s Committee contemplate BI-LO continuing to operate as a going concern.

“Today marks a significant milestone and an important next step in our restructuring efforts,” said Michael Byars, President and Chief Executive Officer of BI-LO. “The two plans submitted before the Court create additional choice for BI-LO’s creditors and encourage competition that we expect will maximize the value of the estate for the benefit of the Company and its stakeholders. Further, the competing plans demonstrate the significant interest in our Company and are a testament to our strong operational performance over the past several months.”

Byars added, “I’d like to thank all of our teammates for their continued hard work, dedication and commitment to BI-LO. We look forward to working with all of our Creditors and the Court to reach an agreement that will enable us to emerge from this process as expeditiously as possible. As we work toward a successful restructuring, we will continue to provide our customers and communities with the freshest products and the same top quality brands they have come to expect.”

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.