Winn-Dixie on Track to Exit Bankruptcy after Compromise with Creditors
JACKSONVILLE, Fla. -- Winn-Dixie Stores, Inc. is set to file its reorganization plan later this month and emerge from bankruptcy protection by late October, after reaching an agreement with its creditors yesterday over how to consolidate the grocer's outstanding debts.
The agreement with two groups of creditors -- the Official Committee of Unsecured Creditors and the Ad Hoc Trade Committee -- will be included in Winn-Dixie's reorganization plan, to be filed June 29, an attorney for the retailer said. Winn-Dixie will also file a disclosure statement and a schedule of payments, based on the class of creditor, he said. The creditors will then vote to either accept or reject the plan.
Creditors had been unable to reach an agreement among themselves over the past months, and one group of creditors had formed the ad hoc committee in March to look into the issue on its own. Earlier this week the ad hoc committee sought court approval to file its own consolidation plan under seal, and conduct a case management conference on the issue.
Winn-Dixie responded by filing a 14-page objection to the ad hoc motion.
The agreement with two groups of creditors -- the Official Committee of Unsecured Creditors and the Ad Hoc Trade Committee -- will be included in Winn-Dixie's reorganization plan, to be filed June 29, an attorney for the retailer said. Winn-Dixie will also file a disclosure statement and a schedule of payments, based on the class of creditor, he said. The creditors will then vote to either accept or reject the plan.
Creditors had been unable to reach an agreement among themselves over the past months, and one group of creditors had formed the ad hoc committee in March to look into the issue on its own. Earlier this week the ad hoc committee sought court approval to file its own consolidation plan under seal, and conduct a case management conference on the issue.
Winn-Dixie responded by filing a 14-page objection to the ad hoc motion.