Case Background

On July 19, 2015, The Great Atlantic & Pacific Tea Company, Inc. and 20 affiliated debtors (collectively, the "Debtors") each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York.  The cases are pending before the Honorable Judge Robert D. Drain and are jointly administered under Case No. 15-23007.

Bankruptcy Court Contact Information

If you are seeking to contact the Bankruptcy Court for the Southern District of New York, please do so via hard copy at the following address:

Southern District of New York (White Plains)
300 Quarropas Street, Room 248
White Plains, NY 10601
Attn: Chambers of the Honorable Judge Robert D. Drain

Important Information & Dates

Global Settlement Agreement

On May 10, 2016, the Debtors and the Official Committee of Unsecured Creditors filed a joint motion (the “Motion”) for approval of a Global Settlement agreement among the Debtors, the Creditors’ Committee, the Prepetition PIK Notes Trustee, the Prepetition Convertible Notes Trustee, Unions and the Pension Plans, and for related relief.  The Global Settlement resolves, among other things, the Creditors’ Committee’s potential challenges that were preserved under the Final DIP Order, including the avoidance of prepetition liens of the Secured Creditors and equitable subordination of the Secured Creditors’ claims.  In exchange, the Secured Creditors have agreed to (i) cede $11.25 million in cash collateral and share in proceeds from avoidance actions with the Debtors’ estates as described in the Motion; (ii) share in the proceeds of a prepetition cause of action of the Debtors with the Pension Plans, with 5% of such proceeds (not to exceed $1.5M) to be distributed to the Pension Plans; (iii) share 5% of the value of tax savings actually realized by the Secured Creditors with the Pension Plans to the extent the Debtors file a chapter 11 plan that provides for the continued operation of the liquor stores by the reorganized Debtors and the preservation of net operating loss carryforwards; and (iv) support a substantial contribution claim of the United Food and Commercial Workers Union, International Union and consent to the payment of $1.5M in fees and expenses of the attorneys and financial advisors to the Unions.  In addition, pursuant to the Global Settlement, the Debtors will continue making pay downs of the Secured Creditors’ claims, subject to a modified wind down budget that will allow for the continued use of Cash Collateral by the Debtors.

A hearing to consider the Motion was held before the Honorable Robert D. Drain in the United States Bankruptcy Court for the Southern District of New York, located at 300 Quarropas Street, White Plains, New York, 10601, on June 2, 2016 at 10:00 a.m. (Prevailing Eastern Time).  On June 6, 2016, the bankruptcy court entered an order approving the Global Settlement Agreement.

Notice of hearing and summary of the key terms of Global Settlement

Motion to Approve Global Settlement

Global Settlement Agreement 

Auction of Liquor Store Assets and Licenses

The Debtors issued the below notice regarding their intent to sell (i) their liquor stores, including the related store lease agreements, permits and/or licenses, inventory, and other assets, and (ii) their “pocket” liquor licenses (collectively, the “Liquor Store Assets and Licenses”).  Click below to view the notice, which includes important information, including dates, deadlines, and contact information in connection with the sale and bidding process for the Liquor Store Assets and Licenses. 

Notice of Sale of Liquor Stores Assets and Licenses

Click below to view the Debtor’s “Bid Process Letter” for the sale of the Liquor Store Assets and Licenses.

Bid Process Letter

Click below to view the Debtor’s form purchase agreements for the Liquor Store Assets and Licenses.

Form Liquor Store Purchase Agreement

Form Pocket Liquor License Purchase Agreement