Bi-Lo, Creditors Offer Dueling Reorganization Plans

Law360, New York (November 23, 2009, 3:20 PM EST) -- Bankrupt supermarket chain Bi-Lo LLC has filed a reorganization plan that would allow the company to continue operating with the help of $350 million from Lone Star Funds, while its unsecured creditors and term lenders have proposed a rival plan that would sell the company to a separate investor group and the term lenders.

The debtor's plan, filed Friday in the U.S. Bankruptcy Court for the District of South Carolina along with a disclosure statement, calls for Lone Star to make a $150 million equity investment...
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