Winn-Dixie gets one-day bridge extension to exclusive plan-filing period

By Caroline Salls

Pittsburgh, April 7 - Winn-Dixie Stores, Inc. obtained a one-day bridge extension to its exclusive period to file a plan of reorganization pending a final hearing, according to a Thursday filing with the U.S. Bankruptcy Court for the Middle District of Florida.

In total, the company wants to extend its exclusive plan filing period to June 29 from April 19 and the solicitation period to Aug. 29 from June 21.

However, since the hearing on the exclusivity extension will not be held until April 20, the court has granted a one-day extension to the company's exclusive plan-filing period.

According to the motion, the most significant open issue is the treatment of unsecured claims, or as an alternative, consideration of the substantive consolidation of the company's estates.

Winn-Dixie said it is working with its official committee of unsecured creditors to forge a compromise of the substantive consolidation issue to allow it to file a plan of reorganization that will be consensual among the various creditor constituencies and avoid litigation.

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 Middle District of Florida. Its Chapter 11 case number is 05-03817.

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