Interest Expense, Net

3 Months Ended

Jun. 18, 2011

13. Interest Expense, Net

Interest expense, net is comprised of the following (in thousands):

	For the 16 Weeks Ended
	June 18, 2011		June 19, 2010
$800 million Debtor-in-Possession Credit Agreement	$	11,469	$	-
$655 million Credit Agreement		711		4,005
Related Party Promissory Note, due Aug. 18, 2011		-		187
11.375% Senior Secured Notes, due Aug. 1, 2015		9,100		9,150
9.125% Senior Notes, due Dec. 15, 2011		-		360
5.125% Convertible Senior Notes, due June 15, 2011		-		2,601
6.750% Convertible Senior Notes, due Dec. 15, 2012		-		5,295
9.375% Notes, due August 1, 2039		-		5,815
Obligations under capital leases and real estate liabilities		16,262		15,442
Self-insurance and GHI interest		6,933		5,119
GHI discount rate adjustment and COLI non-cash interest		3,641		3,889
Amortization of deferred financing fees and discounts		332		8,734
Other		6		575
Subtotal		48,454		61,172
Interest and dividend income		-		(30	)
Interest expense, net	$	48,454	$	61,142

We recorded $11.5 million in contractual interest from the DIP Credit Agreement during the 16 weeks ended June 18, 2011. We continued to record contractual interest for our $260 million 11.375% Senior Secured Notes due 2015 that were issued in August 2009. We did not record contractual interest expense of approximately $14.0 million for our Related Party Promissory Note, due August 18, 2011, 9.125% Senior Notes, due December 15, 2011, 5.125% Convertible Senior Notes, due June 15, 2011, 6.750% Convertible Senior Notes, due December 15, 2012, and 9.375% Notes, due August 1, 2039, all of which are unsecured obligations for which we ceased accruing interest during the fourth quarter 2010 as a result of the Bankruptcy Filing. Debt discounts and deferred financing fees for all debt which is subject to compromise were reclassified into the carrying value of the respective indebtedness upon the Bankruptcy Filing and the balances were then adjusted to the face value of the debt. As a result of this reclassification, we ceased amortization of deferred financing fees and discounts effective as of the Bankruptcy Filing date. Although we have recorded interest accretion expense on obligations under capital leases and real estate liabilities, self-insurance reserves, GHI and corporate owned life insurance obligations, we have not made a final determination as to the value of any underlying assets or the rejection/assumption of any of the obligations. Once a determination is made, the accretion of the interest expense may change.