Legal News

Tops Markets to pay $85M for Penn Traffic's supermarkets

By (Breaking Legal News)

Tops Friendly Markets said Friday it is buying all 79 stores run by bankrupt rival Penn Traffic Co. for $85 million in cash, a move that would deepen its roots in New York and Pennsylvania and extend its reach into other Northeastern states.

Tops, a 76-store chain based in suburban Buffalo, said its bid has been accepted by Syracuse-based Penn Traffic and recommended to the U.S. Bankruptcy Court in Wilmington, Del., for approval. A judge met with lawyers for two hours Friday to discuss the proposed deal, then adjourned the hearing until Monday.

"The court proceeding went as expected, and our goal to see a bid chosen that will save the greatest number of stores and jobs is on track," said Sen. Charles Schumer, D-N.Y.

Along with its cash offer, Tops said it would eliminate about $100 million in unsecured claims against Penn Traffic's estate. That includes a $72 million claim for withdrawal liability from the United Food and Commercial Workers Union, which represents all of Tops' work force and about 85 percent of Penn Traffic's.

Full post as published by Breaking Legal News on January 09, 2010 (boomark / email).