CLARIFICATION: A GlobeSt.com story published earlier unintentionally misstated a Morningstar equity analysts' comments on Penn Traffic's transaction.

SYRACUSE, NY-Penn Traffic is postponing a court hearing scheduled for today on its Chapter 11 reorganization plan because of "multiple compelling proposals" for a sale-leaseback transaction. the deal involves its grocery store chains, which include BiLo Foods, P&C Foods and Quality Markets, as well as some of its distribution properties. Locally based Penn Traffic did not reveal what companies are interested, nore did they unveil a timeframe.

A Penn Traffic spokesman says the stores "are very strong market performers that are very competitive and doing well." Of its units, the company owns 21 and leases space for the remaining supermarkets.

Penn Traffic filed for Chapter 11 in May of 2003. At the time, company officials said they were filing because of a struggling supermarket sector due to a "weak economy, a decrease in consumer confidence, a lack of food inflation and the increased penetration of the retail food industry by alternative channels of trade, such as supercenters and limited assortment stores." During that period the company closed or sold 105 of its stores, including all of its Big Bear chain.