Associated Press - November 24, 2009 11:25 AM ET

GREENVILLE, S.C. (AP) - Southern grocery chain Bi-Lo says its bankruptcy reorganization plan includes a $350 million infusion from the private equity firm that owns it.

The Greenville News reported Tuesday that Bi-Lo said its plan includes $150 million in new investment and $200 million in loan financing by Dallas-based private equity group Lone Star Funds.

The Mauldin-based grocery chain said a further $150 million loan would fund operations after Bi-Lo emerges from bankruptcy.

Company officials said a committee of Bi-Lo's unsecured creditors submitted a competing reorganization plan that calls for a different private equity firm to be the lead investor.

Bi-Lo operates more than 200 supermarkets in South Carolina, North Carolina, Georgia and Tennessee.

Information from: The Greenville News, http://www.greenvillenews.com

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