Winn-Dixie plan confirmation appealed by creditors, landlords

By Caroline Salls

Pittsburgh, Nov. 20 - Winn-Dixie Stores, Inc.'s plan of reorganization confirmation was appealed by The Florida Tax Collectors, creditors Liquidity Solutions, Inc., Orix Capital Markets, LLC and CWCapital Asset Management, LLC and several store landlords, according to Friday filings with the U.S. Bankruptcy Court for the Middle District of Florida.

The plan was confirmed on Nov. 9.

As previously reported, Winn-Dixie expects to emerge from Chapter 11 within 30 days of the confirmation date.

The company has a commitment for $725 million in exit financing from a consortium led by Wachovia Bank.

Winn-Dixie said it expects to emerge from Chapter 11 with sufficient financing and liquidity to make significant investments in its current store base, to develop new stores and to take other actions to position the business to compete effectively over the next several years.

Reorganized Winn-Dixie will authorize up to 150 million shares of new common stock, with 50 million shares to be issued under the plan.

Substantially all of the unsecured liabilities of the company will be exchanged for common equity of the reorganized company, allocated to the unsecured creditors in accordance with the substantive consolidation compromise.

Treatment of creditors under the plan will include:

• Noteholder claimants will initially receive 62.69 shares of new common stock per $1,000 of claim, and on subsequent distribution dates any excess new common stock held in reserve, for an estimated recovery of 95.6%;

• Holders of landlord and vendor supply claims of $3,000 or more will receive either 46.26 shares of new common stock per $1,000 of claim, plus a share of remaining new common stock; or, if the claimant reduces the claim to less than $3,000, 67% of the claim in cash;

• Holders of retirement plan claims will receive either 38.75 shares of new common stock per $1,000 of claim, plus any remaining new common stock; or 67% of their claim in cash if they elect to reduce it below $3,000;

• Holders of other unsecured claims will receive either 34.89 shares of new common stock per $1,000 of claim, plus any remaining new common stock; or 67% of their claim in cash if they elect to reduce it below $3,000;

• Holders of administrative claims, bond/letter-of-credit backed and priority claims will be paid in full;

• Holders of secured claims may be reinstated, satisfied in deferred payment terms, or paid in full, at the election of the company;

• Creditors with "small" claims under $3,000, including creditors who elect to reduce their claims to $3,000, will receive cash payments equal to 67% of the amount of their claims;

• Creditors with convenience claims under $100 will be paid in cash, in full; and

• Current equity holders and subordinated claimholders will receive no distribution.

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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