Judge approves Bashas' bankruptcy plan

Chandler, Ariz. A report by the Arizona Daily Star on Saturday said Arizona grocer Bashas' plan to emerge from bankruptcy protection was approved Friday by a federal judge despite objections from banks and insurance companies holding the grocery retailer’s secured debt.

"Any new plan could not exceed the 100% percent payment now proposed," Judge James Marlar wrote. "It would be futile to go back to the drawing board, with an acceptable 100% payment plan now before the court."

Bashas' plan was supported by its unsecured creditors, primarily suppliers.

The company filed for a planned Chapter 11 bankruptcy reorganization in July 2009, with about $271 million in liabilities and $386 million in assets. Bashas’ had more than 155 stores but now has 132, all but two in Arizona.

Besides Bashas' stores, the company operates Hispanic grocer Food City, and high-end grocer AJ's Fine Foods.

Bashas’ plans to pay its creditors over three years and then refinance an estimated $155 million in remaining debt and pay off all its current obligations, Marlar noted.