Montvale-based A&P announced Thursday evening it will use $490 million from private investors to complete its bankruptcy reorganization plan.
The supermarket operator, which filed for bankruptcy in December 2010, will turn into a private company in 2012 once the restructuring is complete, according to the announcement.
The investment “positions us for a bright future with solid financial backing from sophisticated investors who know our company and industry well, and who also share our vision for A&P’s future,” President and CEO Sam Martin said in a statement.
Investment firms The Yucaipa Cos. LLC and Mount Kellett Capital Management LP, along with funds managed by Goldman Sachs Asset Management L.P., provided the investment for A&P.
The funds will be the basis for the reorganization plan, according to the company, which will be submitted for review later this month. Once the transaction is complete, a new board of directors will replace the current board, which will be dissolved. A&P anticipates its stores to operate normally through the transition.
A&P responded to a request for comment through a statement. “The details of how the funds will be used will be detailed in the A&P’s plan of reorganization, which will be filed prior to Nov. 14,” the company said.