NJ Slams A&P Ch. 11 Plan Over $18M In Back Taxes

Law360, New York (February 23, 2012, 8:16 PM EST) -- New Jersey's Division of Taxation on Thursday objected to The Great Atlantic & Pacific Tea Co. Inc.'s Chapter 11 reorganization plan, saying it doesn't do enough to resolve $18 million the grocer owes its home state in back taxes.

The agency said A&P is required under U.S. bankruptcy law to pay all of its back taxes plus 6.25 percent interest, but the plan says the taxes will be paid only “with the reasonable consent of investors” and doesn't provide for any interest payments. The plan also...
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