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12:30 p.m. update: P&C's owner granted bankruptcy court extention
Published: December 22, 2009
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share thisThe owner of the P&C Foods got the go-ahead in federal court this morning to again secure a quick-infusion of cash and credit to stay in business as a buyer for the company is hunted, a
U.S. Bankruptcy Court Judge Peter J. Walsh, in federal court in
Penn Traffic filed for Chapter 11 protection from its creditors on Nov. 18, the third such filing in 10 years. In this filing, the company told the court it wants to sell all of its assets.
According to The Associated Press, on Monday, Penn Traffic got a reprieve from its largest creditor, GE Capital. At the urging of U.S. Sen. Charles Schumer, GE Capital agreed to extend the deadline -- it had been Monday -- for Penn Traffic to find the best offer for its 79 supermarkets and other assets.
The company now has until the end of January to find a buyer, although the date isn't locked into court records yet.
A final hearing on Penn Traffic's requests to tap cash and credit lines is scheduled for Jan. 25.
Tops markets has offered to buy all of Penn-Traffic’s stores, including the two P&Cs in The Valley, the one in the Towanda area, and the Bi-Lo stores in Troy and Canton.
Price Chopper also has bid on some of Penn Traffic’s stores, including the P&C in the Towanda area.
