Winn-Dixie Bankruptcy to Proceed Without Equity Security Committee

JACKSONVILLE, Fla. -- The U.S. Trustee representing the Chapter 11 bankruptcy of Winn-Dixie Stores, Inc. here has disbanded the Equity Security Committee that represented stockholders in the company, according to a report in the Jacksonville Business Journal.

Counsel representing both Winn-Dixie and its creditors had said in the past that the presence of an equity committee would not affect the retailer's reorganization plan.

The equity committee had previously requested a hearing to ask that an independent investigation be conducted to determine the reasons behind Winn-Dixie's filing for bankruptcy. During a hearing yesterday, Judge Jerry Funk declined to hear that motion, since the committee has been disbanded.

Counsel representing the U.S. Trustee's Office said the trustee will discuss with Winn-Dixie and its creditors committee the issues raised by the former equity committee, according to the report.

This ad will auto-close in 10 seconds