A court on Friday gave permission for Bi-Lo LLC to operate on a $125 million loan during the company’s bankruptcy reorganization.

The grocer received the revised debtor-in-possession loan from GE Capital, according to a Bi-Lo statement. The GE Capital loan originally was for $100 million.

“We are pleased to have reached this agreement and to have received interim court approval,” said Michael Byars, Bi-Lo president and chief executive officer. “The revised agreement we have reached with GE Capital provides us with more liquidity on better overall terms than originally proposed.”

Mauldin, S.C.-based Bi-Lo, which has 29 stores in the Chattanooga area, sought Chapter 11 bankruptcy protection March 23.

Bi-Lo will continue to operate using the revised loan as well as cash on hand and cash from operations, Mr. Byars said.

The U.S. Bankruptcy Court for the District of South Carolina on Thursday sealed Bi-Lo’s business dealings with its grocery distributor, C&S Wholesale Grocers Inc., to protect what Bi-Lo called proprietary information.

“The C&S agreements contain highly sensitive information that each of the parties thereto deems to be proprietary and confidential, including commercial information and pricing structures,” a court filing reads.

Bi-Lo is seeking court permission to pay C&S nearly $21 million to ensure the continued flow of groceries during the reorganization.

Bi-Lo will continue to invest in its stores and find ways to improve customer service, Mr. Byars has said.

Bi-Lo has been granted bankruptcy court permission to continue paying employee salaries and benefits, and expects to continue operating its bonus card program, according to a company statement.