US supermarket operator Penn Traffic has said a bankruptcy court has approved US$270m of financing to help the company pay down loans and run its business while under bankruptcy court protection.
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Syracuse, New York-based Penn Traffic said it obtained the financing from Fleet Capital Corp and other lenders. The retailer said it would use around $200m to pay in full its pre-bankruptcy secured loans, reported Reuters.
Penn Traffic, which operates 212 supermarkets in six states, filed for Chapter 11 bankruptcy protection in May after struggling to survive the sluggish economy and fierce competition from low-price retailer Wal-Mart Stores.
