Court approves Winn-Dixie credit facility
Apr 1, 2005 12:00 PM
The United States Bankruptcy Court has granted final approval for Winn-Dixie Stores Inc's $800 million debtor-in-possession (DIP) credit facility from Wachovia Bank NA. The DIP credit facility, which replaces the Jacksonville FL-based supermarket chain's previous $600 million credit line, will be used to supplement cash flow during the firm's reorganization.
In February, as part of its voluntary filing to reorganize under Chapter 11, Winn-Dixie filed more than 25 First Day Motions to continue to operate its business. At hearings this week, Judge Robert D Drain of the US Bankruptcy Court for the Southern District of New York granted final approval of the firm's request to:
Continue payment of salaries, wages, and health and welfare benefits to associates as normal.
Pay vendors for goods and services provided on or after Feb 22, 2005.
Continue honoring obligations to its customers under the company's Customer Reward Card program.
All Winn-Dixie stores in the United States and the Bahamas are open and conducting business as usual.
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