A&P Bankruptcy Chatter Sinks Stock
NEW YORK (
) --
Great Atlantic & Pacific Tea
(GAP)
, better known as A&P, is plunging following rumors of a possible bankruptcy.
A Ch. 11 filing could come as soon as this weekend,
Bloomberg
reported, citing sources familiar with the matter.
Separately,
Reuters
reported that A&P hired restructuring lawyers Kirkland & Ellis.
Great Atlantic & Pacific Tea, which owns A&P, Walbaum's and Pathmark, among other grocers, had about $1.5 billion of debt as of September.
Vendors have also reportedly tightened credit terms with A&P over the last several weeks, according to
Reuters
.
Shares of the company are plunging 66.8% to 94 cents, in afternoon trading.
--Written by Jeanine Poggi in New York.
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