Winn-Dixie Receives Court Approval Of 'First Day Motions'
February 23 2005 - 5:37PM
PR Newswire (US)
Winn-Dixie Receives Court Approval Of 'First Day Motions' Court
Authorizes Continued Payment Of Employee Wages And Benefits,
Payment To Vendors For Post-Petition Goods And Services, And Other
Actions To Allow The Company's Business To Operate As Usual
JACKSONVILLE, Fla., Feb. 23 /PRNewswire-FirstCall/ -- Winn-Dixie
Stores, Inc. (WNDXQ) announced today that the U.S. Bankruptcy Court
has granted the relief the Company requested in a series of court
filings known as "First Day Motions." The orders issued by the
Court will help the Company continue to operate its business during
the reorganization process. On February 21, 2005, as part of its
voluntary filing to reorganize under Chapter 11, Winn-Dixie filed
more than 25 First Day Motions to support its associates and
vendors, together with its customers and other stakeholders. Among
other things, the Court granted interim approval for the Company'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 February 22, 2005; Reject the
unexpired leases of approximately 150 previously closed stores and
two previously closed warehouses; and Continue honoring obligations
to its customers under the Company's Customer Rewards Card program.
The Court also granted interim approval for the Company to access
up to $600 million of its new $800 million debtor-in-possession
(DIP) credit facility from Wachovia Bank, N.A. The DIP credit
facility, which replaces the Company's previous $600 million credit
line, will be used to supplement the Company's cash flow during the
reorganization process. A hearing for final approval of the entire
DIP facility has been scheduled for March 15, 2005. A hearing for
final approval of all of the other First Day Motions, including
several that were deferred, has been scheduled for March 4, 2005.
The Company's First Day Motions were granted, pending, among other
things, review by the Creditors' Committee, which is expected to be
formed during the week of February 28, and subsequent approval by
the Court. All 920 Winn-Dixie stores in the U.S. and the Bahamas
are open, and the Company reports that business is operating
smoothly. Peter Lynch, President and Chief Executive Officer, said:
"I am very proud of our associates, who have reacted to the news of
our reorganization with their heads held high and their focus
squarely on serving our customers. Our vendors have also been
supportive. Our stores are well stocked and we are conducting
business as usual." Winn-Dixie's Chapter 11 case in the U.S.
Bankruptcy Court for the Southern District of New York has been
assigned the number 05-11063, the Honorable Robert D. Drain
presiding. Chief Judge Stuart M. Bernstein heard the First Day
Motions in hearings on February 22 and 23. About Winn-Dixie
Winn-Dixie Stores, Inc., is one of the nation's largest food
retailers. Founded in 1925, the Company is headquartered in
Jacksonville, FL. For more information, please visit
http://www.winn-dixie.com/. More information about Winn-Dixie's
reorganization case is available on the Company's Web site at
http://www.winn-dixie.com/ or as follows: Customers:
1-866-WINN-DIXIE (1-866-946-6349), Media: Kekst and Company --
Wendi Kopsick, (212) 521-4867, Caroline Gentile, (212) 521-4883, or
Michael Freitag, (212) 521-4896. Investors: 212-521-4835.
Forward-Looking Statements Certain statements made in this press
release may constitute "forward- looking statements" within the
meaning of the federal securities laws. These forward-looking
statements involve certain risks and uncertainties. Actual results
may differ materially from the expected results described in the
forward-looking statements. These forward-looking statements
include and may be indicated by words or phrases such as
"anticipate," "estimate," "plans," "expects," "projects," "should,"
"will," "believes," or "intends" and similar words and phrases.
There are a number of factors that could cause the Company's actual
results to differ materially from the expected results described in
the Company's forward-looking statements. There can be no assurance
that the Company's restructuring will be successful. Risk factors
related to its restructuring efforts that could cause actual
results to differ from these forward-looking statements include,
but are not limited to, the following: the Company's ability to
continue as a going concern; the Company's ability to obtain court
approval for its DIP facility; court approval of the Company's
first day papers or other motions filed with the bankruptcy court
from time to time; the ability of the Company to operate under the
terms of the Company's DIP facility; the ability of the Company to
develop, confirm and consummate plans of reorganization; risks
associated with third parties seeking and obtaining court approval
to terminate or shorten plans of reorganization, for the
appointment of a Chapter 11 trustee or to convert the cases to
Chapter 7 cases; the potential adverse impact of the Chapter 11
cases on the Company's liquidity and results of operations; the
ability of the Company to obtain and maintain trade credit and
shipments and terms with vendors and service providers for current
and future orders and to maintain in-stock positions for all of its
product offerings; the Company's ability to maintain contracts that
are critical to its operations; the ability of the Company to
attract and retain customers; the ability of the Company to
attract, motivate and retain key executives and associates; and
potential adverse publicity. In addition, the Company faces a
number of risks with respect to its continuing business operations,
including but not limited to: the Company's ability to execute its
strategic initiatives, including asset rationalization, store
upgrades, expense reduction, brand positioning and customer
service, and to fund its store upgrades and brand positioning
initiatives; the Company's ability to increase sales and market
share through the brand-related initiatives being tested in the
Company's lead markets; the Company's ability to increase capital
spending levels in the future to invest in its store base and other
capital projects; the Company's ability to manage its inventory
efficiently; and the Company's response to the entry of new
competitors in its markets, including traditional grocery store
openings and the entry of non- traditional grocery retailers such
as mass merchandisers, supercenters, warehouse club stores,
dollar-discount stores, drug stores and conventional department
stores. Please refer to discussions of these and other factors in
this news release, in the Company's Annual Report on Form 10-K for
the fiscal year ended June 30, 2004, the Quarterly Report on Form
10-Q for the quarter ended January 12, 2005, and other Company
filings with the Securities and Exchange Commission. These
statements are based on current expectations and speak only as of
the date of such statements. The Company undertakes no obligation
to publicly revise or update these forward-looking statements,
whether as a result of new information, future events or otherwise.
DATASOURCE: Winn-Dixie Stores, Inc. CONTACT: Investors,
+1-212-521-4835, or Media, Wendi Kopsick, +1-212-521-4867, or
Caroline Gentile, +1-212-521-4883, or Michael Freitag,
+1-212-521-4896, all of Kekst and Company, for Winn-Dixie Stores,
Inc. Web site: http://www.winn-dixie.com/
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