Fairway Wins Approval Of Restructuring Plan
June 9, 2016 | 1 min to read
Fairway Group Holdings Corp., a New York supermarket chain that faltered following an ambitious expansion, won court approval on Tuesday for a reorganization plan that will cut its debt load in half.
Judge Michael Wiles of the U.S. Bankruptcy Court in Manhattan signed off on the plan a little more than a month after the store operator filed for chapter 11 protection. The company hopes to emerge formally from bankruptcy within two weeks, according to its lawyer, Sunny Singh.
The restructuring plan cuts Fairway’s funded debt by $140 million and leaves it with about $50 million in cash to help maintain operations while it works to get back on its feet. All of the company’s 4,000 employees will keep their jobs, and Fairway won’t change collective-bargaining agreements for its unionized workers.
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