CHANDLER, Ariz. — The secured creditors of Bashas' here, who filed a motion earlier in the week to delay the chain's scheduled emergence from Chapter 11 bankruptcy protection, withdrew the motion Thursday — meaning Bashas' is on schedule to formally emerge on Saturday.
According to Michael McGrath, Bashas' bankruptcy attorney, the secured creditors — three banks, which are owed a total of $110 million, and noteholders at an insurance company, who are owed $86 million — filed the appeal to facilitate internal discussions among themselves. Representatives of Bank of America, Wells Fargo Bank, Compass Bank and Prudential Life Insurance Co. have not made themselves available for comment.
The U.S. Bankruptcy Court in Phoenix confirmed the chain's reorganization plan last week over the objections of the secured creditors. The plan calls for Bashas' to repay 100% of its debts to all secured and unsecured creditors within three years.