Arizona grocer Bashas' Inc. is seeking court approval of a plan to reorganize and repay its debts over the objections of its largest creditors.
The Chandler-based company operates 125 supermarkets throughout Arizona. Bashas' has been operating under Chapter 11 bankruptcy protection since July 2009 and is proposing to repay all of its creditors in full over a three-year period beginning in October.
At a hearing Thursday in U.S. Bankruptcy Court in Phoenix, a certified public accountant said Bashas' has $104 million in cash and the capacity to pay off some $300 million in debts in a timely fashion.
But the reorganization plan is opposed by Bashas' secured creditors who claim Bashas' may not have the financial strength to pay back its creditors.
The hearing on the plan is scheduled to continue next week.