Winn-Dixie files for Chapter 11 reorganization
Feb 22, 2005 9:02 AM, from staff and wire reports
Winn-Dixie Stores Inc and 23 of its United States subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the US Bankruptcy Code in order to address financial and operational challenges that have hampered its performance. The filings were made February 21 in the US Bankruptcy Court for the Southern District of New York.
All 920 Winn-Dixie stores in eight states and the Bahamas are open and serving customers. The company’s Customer Reward Card is still being honored, and all other customer programs and policies remain in effect.
To finance operations during restructuring, Jacksonville FL-based Winn-Dixie has secured an $800 million debtor-in-possession (DIP) financing facility from Wachovia Bank NA. Subject to court approval, the DIP credit facility, which replaces the company’s previous $600 million credit line, will be used to supplement Winn-Dixie’s cash flow during reorganization.
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