Winn-Dixie granted chapter 11 extension
Winn-Dixie Stores has received court approval to extend the deadline on filing its Chapter 11 bankruptcy plan until December.
Winn-Dixie expects to continue operating with 587 stores when it emerges from Chapter 11, but 28 of those stores are closed because of Hurricane Katrina, according to Stephen Busey, an attorney representing the company.
“Obviously, that timeline has not been enhanced by what happened in New Orleans last week,” he said.
A U.S. Bankruptcy Judge approved an extension of time for Winn-Dixie to file its reorganisation plan from Sept. 19 to Dec. 19. Although Busey said the company may have to seek an additional extension in December if the plan isn’t ready.
Busey said the company has been planning to submit a proposed business plan to its committee of unsecured creditors by the end of October. Once it negotiates details of the plan with the creditors, it will then move on to filing its complete reorganisation plan, which will include details of paying off creditors and the status of Winn-Dixie stockholders.
