Banks and insurance companies holding about $200 million in secured debt have agreed to drop an appeal of Arizona grocer Bashas' court-approved bankruptcy plan.
The deal between the company and its lenders was revealed in a bankruptcy court filing on Wednesday. Instead of yearly payments, the lenders will receive monthly payments. They'll also be able to keep pursuing claims about their rights to prepayment penalties, higher default interest rates and their costs and fees.
The agreement removes a major stumbling block and will allow the Chandler-based company to emerge from bankruptcy protection when the reorganization plan takes effect at the end of the month.
The company filed for bankruptcy protection in July 2009 and has shed stores and employees as it slashed costs.