MONTVALE, NJ—The Great Atlantic & Pacific Tea Companysays the United States Bankruptcy Court for the Southern District of New York has approved the company's First Day Motions in its bankruptcy filing -- including a critical drawdown of $50 million in DIP financing.

The company currently operates under the brand names A&P, Best Cellars, Food Basics, The Food Emporium, Pathmark, Superfresh and Waldbaum's.

“We are pleased that the Court has granted these motions promptly, which allows us to continue operating in ordinary course during this process – continuing to pay employees, work with suppliers and serve customers,” says Paul Hertz, president and chief executive officer of A&P. “We are confident that pursuing a sale process implemented through chapter 11 will enable us to preserve as many jobs as possible and ensure that we achieve the best possible outcome for all stakeholders. I want to thank our employees for their hard work and commitment to our company, as well as our suppliers for their help in guaranteeing that our stores are fully stocked and that we are able to continue meeting the needs of our customers and their families without interruption."

Perhaps most importantly, the Court granted A&P immediate access to a much-needed cash infusion of $50 million, half of the $100 million debtor-in-possession (DIP) financing being provided by Fortress Investment Group. The DIP facility will enable A&P to continue operating its stores and pay its suppliers, vendors, employees and others in the ordinary course of business.

As previously announced, A&P is selling approximately 120 stores, including sales to Stop & Shop and ACME previously reported by GlobeSt.com, and it will continue strategic sales through the chapter 11 process.