Retail News Breaks Archives
Winn-Dixie distributes shares held in reserve under reorg plan
June 18th, 2010
JACKSONVILLE, Fla. – Winn-Dixie Stores Inc. plans to distribute all remaining shares of its common stock that had been held in reserve to settle outstanding unsecured pre-petition bankruptcy claims.
The Southeast supermarket chain said that about 6.8 million shares are slated to be distributed on Friday. Shares will be distributed to parties previously holding allowed claims, including noteholders, landlords, vendors and suppliers, retirement plan participants and other unsecured creditors, according to the retailer.
Winn-Dixie, which had announced the share distribution plan in February, noted that the shares to be distributed have been included in its shares outstanding for calculating earnings per share (EPS) since the company's emergence from Chapter 11 bankruptcy protection and therefore will not impact its reported EPS.
The retailer reported that it emerged from Chapter 11 on Nov. 21, 2006, under a reorganization plan that included a total of 10.3 million of the company's shares to be held in reserve to satisfy remaining unsecured pre-petition claims. Under the reorganization plan, once the company determines that it has excess shares held in reserve, it must distribute them on a pro-rata basis to bankruptcy claimants with allowed claims, based on the number of shares they received pursuant to the plan, according to Winn-Dixie.
One of the nation's largest food and drug retailers, Winn-Dixie operates 515 supermarkets, including more than 400 in-store pharmacies, in Florida, Alabama, Louisiana, Georgia and Mississippi.