A&P creditors accept amended plan of reorganization by majority vote

By Jim Witters

Wilmington, Del., Jan. 31 - A majority of Great Atlantic & Pacific Tea Co., Inc. (A&P) creditors voted to accept the company's plan of reorganization, according to documents filed Monday with the U.S. Bankruptcy Court for the Southern District of New York.

The plan received a majority of votes in each of the nine classes casting ballots, according to the statement of Alison M. Tearnen Schepper of Kurtzman Carson Consultants LLC. Teranen tabulated the ballots.

Voting results

According to Tearnen's statement:

• All 66 of the second-lien noteholders, representing $252.6 million of claims, accepted the plan;

• Holders of convertible note claims voted 149, or 60.08%, to reject the plan, and 99, or 39.92%, to accept it. Those voting to reject represent $19.8 million in claims (5.25%), while those voting to accept represent $357.4 million in claims (94.75%);

• Holders of senior note claims voted 54, or 84.38%, to accept the plan and 10, or 15.63%, to reject it. Those voting to accept the plan represent $4.42 million in claims (97.8%), while those voting to reject the plan represent $100,698 (2.23%);

• Holders of quarterly interest bond claims voted 797, or 72%, to accept the plan, and 310, or 28%, to reject it. Those voting to accept the plan represent $62 million in claims (67.8%), while those voting to reject the plan represent $29.5 million in claims (32.2%);

• Holders of trade claims voted 19, or 65.5%, to accept the plan and 10, or 35.5%, to reject it. Those voting to accept the plan represent $1.8 million in claims (73.5%), while those voting to reject the plan represent $636,796 in claims (26.5%);

• All six holders of guaranteed landlord claims, representing $7.42 million, voted to accept the plan;

• Holders of pension withdrawal claims voted 162, or 99.4%, to accept the plan, and one, or 0.6%, to reject it. Those voting to accept the plan represent $11.07 billion in claims (99.87%), while those voting to reject the plan represent $13.9 million in claims (0.13%);

• All seven holders of union claims, representing zero dollars in claims, voted to accept the plan; and

• Holders of general unsecured claims voted 593, or 76.32%, to accept the plan and 184, or 23.68%, to reject the plan. Those voting to accept the plan represent $141.9 million in claims (45.86%), while those voting to reject the plan represent $167.51 million in claims (54.14%).

As previously reported, the second lien noteholders agreed to support the plan in exchange for payment in full in cash of their second-lien note claims without the payment of any make-whole claim or prepayment premium.

A&P, a Montvale, N.J.-based operator of supermarkets, filed for bankruptcy on Dec. 12, 2010. Its Chapter 11 case number is 10-25459.

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