Winn-Dixie granted court approval of computer lease settlement agreement

By Caroline Salls

Pittsburgh, Sept. 14 - Winn-Dixie Stores, Inc. obtained court approval of a settlement agreement with IBM Corp., IBM Credit LLC and Ascential Software Corp., according to a Thursday filing with the U.S. Bankruptcy Court for the Middle District of Florida.

Winn-Dixie said it leases computer hardware and obtains software, maintenance and support services for its information technology needs from the three companies.

Under the agreement, Winn-Dixie would return to IBM or IBM Credit the leased servers that were used in stores that have been closed, and IBM Credit will be granted a $66,883 unsecured claim on the servers, according to the motion.

Also under the agreement, pre-bankruptcy claims held by the companies against Winn-Dixie totaling $4.3 million would be deemed as allowed.

IBM has a $2.54 million claim, IBM Credit has a $1.73 million claim and Ascential has a $48,157 claim. IBM Credit's claim includes the $66,883 unsecured claim.

IBM Credit's $14.05 million claim and IBM's $2.28 million claim would not be allowed under the agreement.

Winn-Dixie, a Jacksonville, Fla., supermarket company, filed for Chapter 11 on Feb. 21, 2005 in the U.S. Bankruptcy Court for the Southern District of New York. The case was later transferred to the U.S. Bankruptcy Court for the Middle District of Florida. Its Chapter 11 case number is 05-03817.

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