New Chapter 11 Filing - Southeastern Grocers LLC

Southeastern Grocers LLC

3/27/18

Southeastern Grocers LLC, the Jacksonville Florida-based parent company of grocery chains Bi-Lo, Winn-Dixie and others, has filed a prepackaged bankruptcy in the District of Delaware - mere weeks after Tops Holding II Corporation, another grocer, filed for bankruptcy in the Southern District of New York. The company notes that, as part of the chapter 11 filing, it intends to "close 94 underperforming stores," "emerge from this process likely within the next 90 days," and "continue to thrive with 582 successful stores in operation." Unlike Tops, it helps when you don't have any collective bargaining agreements.

More to come...

Jurisdiction: D. of Delaware
Capital Structure: $385mm ABL (Deutsche Bank AG New York Branch), $425mm 9.25% '19 secured notes (Wilmington Savings Fund Society, FSB), $522mm 8.625%/9.375% '18 Senior PIK Toggle Notes unsecured notes (Wells Fargo Bank, NA)
Company Professionals:
- Legal: Weil Gotshal & Manges LLP (Ray Schrock, Matthew Barr, Sunny Singh) & (local) Richards Layton & Finger PA (Daniel J. DeFranceschi, Paul N. Heath, Amanda R. Steele)
- Financial Advisor: FTI Consulting Inc.
- Investment Banker: Evercore Group LLC (Stephen Goldstein)
- Claims Agent: Prime Clerk LLC (*click on company name above for free docket access)
- Independent Director: Neal Goldman
Other Parties in Interest:
- Ad Hoc Group of Unsecured Noteholders & 9.25% '19 Senior Secured Noteholders
  - Legal: Morrison & Foerster LLP (Dennis Jenkins, Brett Miller) & (local) Drinker Biddle & Reath LLP (Steven Kortanek)
  - Financial Advisor: Moelis & Company LLC
- Private Equity Sponsor: Lone Star Funds
  - Legal: King & Spalding LLP (W. Austin Jowers, Paul Ferdinands)