Creditors Approve Winn-Dixie's Reorganization
JACKSONVILLE, Fla. - A majority of creditors have approved Winn-Dixie's reorganization plan, the retailer said yesterday. Now final approval is pending from U.S. Bankruptcy Judge Jerry Funk, who will discuss the matter at a hearing on Oct. 13.
Winn-Dixie, which filed for reorganization under Chapter 11 bankruptcy protection in February 2005, said it hopes to emerge from bankruptcy by mid-November.
(Story continues below.)
Among the creditors' votes, the nine unsecured classes, or unsecured creditors eligible to vote, all accepted the plan. Two secured sub-classes of state and county tax collectors, the Internal Revenue Service and other secured claims, rejected the plan. Fifteen objections to the plan were filed in court, with about half coming from current shareholders who will lose their money.
The reorganization plan establishes 21 classes of claimants, and gets rid of current Winn-Dixie stock. Creditors will receive from 53 to 100 cents on the dollar, depending on their class.
Winn-Dixie is also disputing the amount of money it owes in taxes in several counties and states. Judge Funk is considering that issue as well.
Winn-Dixie, which filed for reorganization under Chapter 11 bankruptcy protection in February 2005, said it hopes to emerge from bankruptcy by mid-November.
(Story continues below.)
Among the creditors' votes, the nine unsecured classes, or unsecured creditors eligible to vote, all accepted the plan. Two secured sub-classes of state and county tax collectors, the Internal Revenue Service and other secured claims, rejected the plan. Fifteen objections to the plan were filed in court, with about half coming from current shareholders who will lose their money.
The reorganization plan establishes 21 classes of claimants, and gets rid of current Winn-Dixie stock. Creditors will receive from 53 to 100 cents on the dollar, depending on their class.
Winn-Dixie is also disputing the amount of money it owes in taxes in several counties and states. Judge Funk is considering that issue as well.