Ahold Uses Chains as Collateral for Loan
By George Anderson
The nervousness of financial institutions has forced Ahold to put several company-owned chains, BI-LO, Giant Food and Stop & Shop, and Albert Heijn, up for collateral to secure a $2.91 billion loan, reports The Baltimore Sun.
The company’s attempt to deal with its $13 billion in debts was complicated by revelations last week that U.S. Foodservice had overstated earnings by $500 million.
The lending banks are requiring Ahold to supply audited 2002 financial results before releasing approximately half of the loan amount to the company.
Moderator’s Comment: Are creditors overreacting to
the recent accounting problems and executive changes at Ahold?
Anderson – Moderator]