Lenders Object To Bashas' Reorganization Plan

Law360, New York (July 19, 2010, 3:48 PM EDT) -- Bankrupt Arizona-based grocer Bashas' Inc.'s senior lenders have objected to its reorganization plan, which they claim is a bid by the company's owners to hold onto their equity interest at the expense of the lenders.

The lenders, Wells Fargo Bank NA, Bank of America NA and Compass Bank, said in an objection Friday that the Basha family, which owns the grocery store chain, is trying to use Chapter 11 to avoid its obligations to the lenders, even though it depends on the lenders to continue providing...
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