Winn-Dixie retirement plan participants seek committee

By Caroline Salls

Pittsburgh, May 3 - Winn-Dixie Stores, Inc. non-qualifying plan participants requested the appointment of an additional committee of creditors to represent the interests of participants in two of the company's retirement plans, according to a Tuesday filing with the U.S. Bankruptcy Court for the Middle District of Florida.

The committee would represent participants in Winn-Dixie's Management Security Plan and Supplemental Retirement Plan.

"In the bankruptcy schedules of [Winn-Dixie], the participants in the non-qualified plans were not separately listed. As a result, the plan participants did not receive notice of the bankruptcy case and did not have an opportunity to participate as parties in interest in this case," according to the motion.

"In particular, the plan participants had no opportunity to participate in any of the 'first-day motions' in this case or the selection of the committee of unsecured creditors.

"As retirees and current employees of [Winn-Dixie], the plan participants have interests far removed and potentially in conflict with the claims of general unsecured creditors.

"A simple but glaring example is the support by the creditors' committee to retain venue of this case in New York when the employees and retirees are located almost exclusively in the South Eastern portion of the country with the largest representation in the state of Florida."

According to the motion, the participants in the non-qualified plans are not covered by a collective bargaining agreement. There are about 1,000 participants in the plans with $100 million in claims.

Winn-Dixie filed for Chapter 11 on Feb. 21. Its case number is 05-11063.

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