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Published on 10/6/2006 in the Prospect News Distressed Debt Daily.

Winn-Dixie debtor gets court OK of $6 million distribution center sale

By Caroline Salls

Pittsburgh, Oct. 6 - Winn-Dixie Stores, Inc. debtor Winn-Dixie Logistics, Inc. obtained court approval of the $6 million sale of its Montgomery, Ala., distribution center and dairy to Montgomery Warehouses LLC, according to a Thursday filing with the U.S. Bankruptcy Court for the Middle District of Florida.

According to the motion, Winn-Dixie no longer needs the Montgomery distribution center and dairy plant and remains liable for the $80,000 per month in maintenance and tax costs.

Montgomery Warehouses has paid a $500,000 deposit.

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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