Creditors Object to Bashas' Disclosure Statement

Law360, New York (February 16, 2010, 7:02 PM EST) -- Bankrupt Arizona-based grocer Bashas' Inc. has put together a reorganization plan that benefits insiders at the expense of creditors, according to a recent objection by Wells Fargo Bank NA, Bank of America NA and Compass Bank.

The banks and noteholders on Friday asked the U.S. Bankruptcy Court for the District of Arizona not to approve the Bashas' reorganization plan, which they say is inconsistent and contradictory.

The company has more collateral than debt but has crafted a plan that leaves its principals' equity intact while extending...
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