Judge Denies Motion to Reappoint Winn-Dixie Shareholders' Committee
JACKSONVILLE, Fla. -- A federal bankruptcy judge has denied a motion to reappoint a shareholders' committee for those invested in Winn-Dixie Stores, Inc. here.
Judge Jerry A. Funk filed his order under seal Tuesday, meaning that his reasons for the denial are unavailable.
The committee was originally formed in August by U.S. Trustee Felicia Turner. However, Turner filed a motion to disband the committee last month after creditors argued it wasn't needed.
Attorneys for Winn-Dixie and its creditors have claimed that once the creditors are paid, there will be little or no money left for shareholders.
Unsecured creditors have about $1.2 million in claims against Winn-Dixie, according to published reports. Under bankruptcy law those creditors have priority over shareholders.
According to a report from the Associated Press, it is therefore likely that Winn-Dixie's stock would be canceled and new stock in the company would be issued to creditors, who would own the company.
Winn-Dixie has said it plans to file its reorganization plan by March and emerge from bankruptcy in June.
Judge Jerry A. Funk filed his order under seal Tuesday, meaning that his reasons for the denial are unavailable.
The committee was originally formed in August by U.S. Trustee Felicia Turner. However, Turner filed a motion to disband the committee last month after creditors argued it wasn't needed.
Attorneys for Winn-Dixie and its creditors have claimed that once the creditors are paid, there will be little or no money left for shareholders.
Unsecured creditors have about $1.2 million in claims against Winn-Dixie, according to published reports. Under bankruptcy law those creditors have priority over shareholders.
According to a report from the Associated Press, it is therefore likely that Winn-Dixie's stock would be canceled and new stock in the company would be issued to creditors, who would own the company.
Winn-Dixie has said it plans to file its reorganization plan by March and emerge from bankruptcy in June.