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.