Winn-Dixie asks for court OK to continue to employ CEO after reorganization plan takes effect

By Jennifer Lanning Drey

Portland, Ore., Oct. 13 - Winn-Dixie Stores, Inc. requested court approval to continue to employ Peter L. Lynch as its president and chief executive officer following the company's emergence from bankruptcy, according to a Friday filing with the U.S. Bankruptcy Court for the Middle District of Florida.

Under the employment contract, Lynch would also serve as chairman of the board following approval of the company's plan of reorganization, according to the filing.

If the contract is approved, Lynch would receive an annual base salary of $1.25 million and remain employed by Winn-Dixie through June 30, 2010. Lynch would also be eligible to receive annual bonuses of up to 150% of his base salary.

In addition, Lynch would have the option to purchase 1.25% of the common stock of Winn-Dixie outstanding on the initial distribution date.

The contract also protects Lynch from being sued after the company's reorganization plan goes into effect.

A hearing has been scheduled for Nov. 16.

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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