A&P Emerges From Chapter 11

The Great Atlantic & Pacific Tea Company announced that it has successfully consummated its financial restructuring and emerged from Chapter 11 bankruptcy protection as a privately-held company. The United States Bankruptcy Court of the Southern District of New York confirmed the Company’s Plan of Reorganization on February 28, 2012.

As previously announced, Mount Kellett Capital Management LP, The Yucaipa Companies LLC and investment funds managed by Goldman Sachs Asset Management, L.P., have provided $490 million in debt and equity financing to sponsor A&P’s reorganization plan and complete its balance sheet restructuring. In addition, JP Morgan and Credit Suisse arranged a $645 million exit financing facility.

“In just over one year, we have completed a thorough restructuring of A&P’s cost structure and balance sheet to build a strong foundation for the Company’s future,” said Sam Martin, A&P’s President and Chief Executive Officer. “With the full support of our financial partners, the new A&P is committed to delivering exceptional value and an enhanced in-store experience to all of our customers across our more than 300 neighborhood food and drug stores.”

As part of the restructuring process, A&P assembled a new management team with experienced executives who are proven experts in their respective areas. The Company also adjusted its store footprint around its core markets, negotiated a new supply and logistics agreement with its principal supplier, C&S Wholesale Grocers, Inc., and worked with the Local Unions representing A&P’s associates to modify their collective bargaining agreements. A&P also refurbished stores, eliminated closed store leases, and opened a brand new Superfresh store in Philadelphia’s Northern Liberties neighborhood.

Mr. Martin commented, “We greatly appreciate the support of our associates, vendors, unions and community leaders throughout the restructuring process, and we especially thank our customers for their loyalty and commitment to shopping at our stores. Going forward, we remain committed to investing in our stores and providing our customers with new products that match their health and wellness needs and reflect the diversity of the neighborhoods we serve.”

A&P and its subsidiaries filed voluntary Chapter 11 petitions on December 12, 2010.

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