Grocery Co. Penn Traffic To Seek Sale Under Ch. 11

Law360, New York (November 18, 2009, 5:44 PM EST) -- Regional supermarket outfit The Penn Traffic Co. has filed for Chapter 11 protection with a proposal to sell virtually all of its assets, contending that it is running short on funds and has no prospects for raising cash from either the debt or equity markets.

The company, which emerged from a previous bankruptcy in 2005, filed its petition Wednesday in the U.S. Bankruptcy Court for the District of Delaware, listing assets of $150.4 million and debts of $136.9 million.

In a statement, Penn Traffic President and...
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