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Published on 3/29/2005 in the Prospect News Distressed Debt Daily.

Winn-Dixie creditor Riverdale Farms joins request to change court to Florida

By Ellen Chang

Houston, March 29 - Winn-Dixie Stores, Inc. creditor Riverdale Farms, Inc. backed an earlier request by Buffalo Rock Co. to move the food retailer's bankruptcy case to the U.S. Bankruptcy Court for the Middle District of Florida or another district in the southeastern United States in a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Riverdale, a Miami, Fla.-based company that sells fresh flowers, said it receives 26% of its annual sales from Winn-Dixie Stores. Its claim against the company is $1.5 million.

"This case is a hardship to Riverdale because in addition to having a large claims against the debtors, Riverdale has been required to retain two law firms, its regular local Florida counsel, as well as local counsel in New York to appear on its behalf," according to the filing.

Transferring the venue to Florida will alleviate many of its costs and assist other Florida creditors.

Buffalo Rock had previously requested a change of venue, saying Winn-Dixie's ties to New York are "tenuous" while a large number of the creditors and the company's principal place of business are located in Florida.

Buffalo Rock is owed $2.8 million by Winn-Dixie. It is a beverage bottler based in Birmingham, Ala., that sells products in Georgia, Alabama and Florida.

A hearing is scheduled for April 12.

Winn-Dixie filed for Chapter 11 on Feb. 21 in the U.S. Bankruptcy Court for the Southern District of New York. Its case number is 05-11063.


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