Creditors push Winn-Dixie to resolve bankruptcy Joe Rauch The creditors of Winn-Dixie Stores Inc. want the case to be resolved sooner rather than later, according to an objection filed Monday by the unsecured creditors committee with U.S. Middle District of Florida's bankruptcy court.
Counsel for Winn-Dixie Stores (Pink Sheets: WNDXQ) filed a motion Nov. 23 seeking to extend, for a third time, the period under which the company can exclusively file a proposed plan of reorganization with the bankruptcy court.
The company has a deadline of Dec. 19 to file a plan of reorganization with the court, with a Feb. 20, 2006 deadline for approval by the court and the case's interested parties. Winn-Dixie is seeking a 90-day extension, which pushes the deadline to file a reorganization plan to March 20, 2006, with an approval deadline of May 22, 2006.
The creditor's objection, filed by creditor's committee counsel John MacDonald of Akerman Senterfitt's Jacksonville office, is limited in that the case's creditors' committee does not object to an extension entirely, but only the length of the extension requested by Winn-Dixie. Rather than 90 days, the creditors committee's motion requests a 30-day extension.
"The Debtors stand poised to file a plan immediately and to move as quickly as possible towards confirmation and emergence from chapter 11," the filing states. "This opportunity should not be squandered with an unduly lengthy extension of the exclusive periods. A prolonged stay in chapter 11 is not only unnecessary, but it may erode value and undercut restructuring efforts."
Winn Dixie had no official comment on the matter, a spokesman said, other than the company expects the issue to be resolved during the plan of reorganization process.
actually the owners of the common should watch the bonds closely and hope that the bonds continue to rise and at least get close to par before the POR is issued. That will be a very positive signal that there will be something for the equity holders.
If there is anything left for the common I am certain to receive 115 in value for my bonds!!
I presume you own the common and I wish you good luck.