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A&P Emerges From Chapter 11

MONTVALE, N.J. — A&P said late Tuesday that it had emerged from Chapter 11 bankruptcy having shed 75 stores and restructured its cost structure and debt over the previous 15 months.

As previously announced, Mount Kellett Capital Management, Yucaipa Cos. and investment funds managed by Goldman Sachs Asset Management have provided $490 million in debt and equity financing to sponsor A&P's reorganization plan and complete its balance sheet restructuring. In addition, JP Morgan and Credit Suisse arranged a $645 million exit financing facility.

"In just over one year, we have completed a thorough restructuring of A&P's cost structure and balance sheet to build a strong foundation for the Company's future," Sam Martin, A&P's president and chief executive officer, said in a statement. "With the full support of our financial partners, the new A&P is committed to delivering exceptional value and an enhanced in-store experience to all of our customers across our more than 300 neighborhood food and drug stores."

As part of the restructuring process, A&P adjusted its store footprint around its core Northeast markets, negotiated a new supply and logistics agreement with its principal supplier, C&S Wholesale Grocers, and worked with the unions representing A&P's associates to modify their collective bargaining agreements. A&P also refurbished stores, eliminated closed store leases, and opened a new Superfresh store in Philadelphia's Northern Liberties neighborhood.

“We greatly appreciate the support of our associates, vendors, unions and community leaders throughout the restructuring process, and we especially thank our customers for their loyalty and commitment to shopping at our stores. Going forward, we remain committed to investing in our stores and providing our customers with new products that match their health and wellness needs and reflect the diversity of the neighborhoods we serve," Martin said.

A&P and its subsidiaries filed voluntary Chapter 11 petitions on Dec. 12, 2010.

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