GRAND UNION SETS CAPITAL REALIGNMENT, CHAPTER 11

WAYNE, N.J. -- Grand Union Co. here said last week it intends to make a prepackaged Chapter 11 filing as part of a capital-restructuring agreement reached with a steering committee of the chain's bondholders.Under the agreement, the chain would eliminate $596 million in bond debt by exchanging its existing 12% senior notes due 2004 for common shares of the reorganized company. By eliminating the bond

WAYNE, N.J. -- Grand Union Co. here said last week it intends to make a prepackaged Chapter 11 filing as part of a capital-restructuring agreement reached with a steering committee of the chain's bondholders.

Under the agreement, the chain would eliminate $596 million in bond debt by exchanging its existing 12% senior notes due 2004 for common shares of the reorganized company. By eliminating the bond debt, Grand Union would also eliminate about $72 million in annual interest payments

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