BI-Lo expects to exit bankruptcy in May

Los Angeles Supermarket chain BI-Lo said Thursday it expects to exit bankruptcy in May, backed by its private-equity owner Lone Star Funds, after it received court confirmation for a reorganization plan, according to a report by Reuters.

BI-Lo filed for bankruptcy 13 months ago.

"BI-Lo will emerge from bankruptcy financially stronger, with less debt, and as a more competitive company in the marketplace," said BI-Lo president and CEO Michael Byars in a statement.

Dallas-based private-equity firm Lone Star bought BI-Lo in 2005 for $660 million from Dutch supermarket group Royal Ahold.