GRAND UNION WON'T MAKE PAYMENT ON INTEREST DUE

WAYNE, N.J. -- Grand Union Co. here said it will not make a $36 million interest payment that is due next Monday.The chain said it will instead use its 30-day grace period to negotiate a capital restructuring with its bondholders and try to obtain a waiver that will keep the chain from defaulting on its bank loans.If no restructuring is agreed upon by the end of the 30-day grace period, Grand Union

WAYNE, N.J. -- Grand Union Co. here said it will not make a $36 million interest payment that is due next Monday.

The chain said it will instead use its 30-day grace period to negotiate a capital restructuring with its bondholders and try to obtain a waiver that will keep the chain from defaulting on its bank loans.

If no restructuring is agreed upon by the end of the 30-day grace period, Grand Union said it will be in default under the indenture governing its 12% senior notes

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