Pathmark Stores Files for Chapter 11

Regional supermarket chain Pathmark Stores Inc. and five affiliates filed for Chapter 11 protection in Bankruptcy Court in Delaware. No stores will be closed or sold, there will be no layoffs related to Pathmark’s reorganization proceeding and trade creditors will continue to be paid, Pathmark said. Carteret, N.J.-based Pathmark listed assets of $842.4 million and debt of $2 billion, including $472.4 million in 9.62% senior subordinated notes due in 2003, with 1,230 holders. Pathmark has entered an agreement with Chase Manhattan Bank for a $75-million debtor-in-possession financing facility. Chase has already committed to provide $600 million in exit financing. The DIP financing, which is subject to court approval, will let Pathmark continue normal operations during the restructuring proceedings.

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