May 15th, 2010 by Reed Allmand 
Bashas’, a chain of grocery stores, have faced numerous delays in their Chapter 11 bankruptcy exit, the latest caused by repayment negotiations between Bashas’ and bondholders who are owed more than $215 million.
A plan that would allow the family-owned chain to leave bankruptcy has the support of most other creditors. Creditors committee attorney Jim Cross blamed the delay on a last minute deal between Bashas’ and the banks and insurance companies holding the bonds.
The lenders and insurance companies voted against a reorganization plan put together by a committee. Most other creditors agreed to its terms.
Bankruptcy Judge James Marlar has urged the parties involved in the dispute to continue working on coming to a settlement deal because if the case goes to trial it could jeopardize the bankruptcy case of the company. Bashas filed Chapter 11 bankruptcy back in January with $271 million in liabilities and $386 million in assets, with the hope that the bankruptcy would allow the family owning the grocery chain to maintain their equity share while repaying their creditors over several years. However, negotiations with creditors have been difficult and prolonged. The company originally planned to emerge from Chapter 11 bankruptcy last month but that was delayed and if they fail to come to a settlement agreement quickly the Chapter 11 bankruptcy exit could be delayed again. Furthermore, if Bankruptcy Judge Marlar is forced to decide how much the creditor, who is owed more than $215 million, will be paid, his decision probably won’t satisfy either party. It’s even possible that the creditor may get paid less than they would have if they just settled the debt without a trial.
About Reed Allmand
Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."
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