Wincanton (LSE:WIN)
Historical Stock Chart
From Jun 2019 to Jun 2024
Winn-Dixie Receives Final Court Approval for $800 Million Credit
Facility and Other 'First Day Motions'
JACKSONVILLE, Fla., March 18 /PRNewswire-FirstCall/ -- Winn-Dixie Stores, Inc.
("WNDXQ") announced today that the U.S. Bankruptcy Court has granted final
approval for the Company's $800 million debtor-in-possession (DIP) credit
facility from Wachovia Bank, N.A. The DIP credit facility, which replaces the
Company's previous $600 million credit line, will be used to supplement the
Company's cash flow during the reorganization process.
In addition, the Court this week also granted final approval for a number of
other court filings known as "First Day Motions." The orders granted by the
Court will help the Company continue to operate its business during the
reorganization process.
On February 21, 2005, as part of its voluntary filing to reorganize under
Chapter 11, Winn-Dixie filed more than 25 First Day Motions to support its
associates and vendors, together with its customers and other stakeholders. At
hearings this week, Judge Robert D. Drain of the U.S. Bankruptcy Court for the
Southern District of New York granted final approval of the Company's request
to:
* Continue payment of salaries, wages and health and welfare benefits to
associates as normal;
* Pay vendors for goods and services provided on or after February 22, 2005;
and,
* Continue honoring obligations to its customers under the Company's Customer
Reward Card program.
All Winn-Dixie stores in the U.S. and the Bahamas are open and conducting
business as usual. Peter Lynch, President and Chief Executive Officer, said:
"We are continuing to make good progress in our reorganization case. A seven-
member creditors' committee has now been formed and, along with its financial
and legal advisors, is actively engaged in the proceedings. We look forward to
a cooperative and productive relationship with them as we continue to take
steps to strengthen our business."
About Winn-Dixie
Winn-Dixie Stores, Inc., is one of the nation's largest food retailers. Founded
in 1925, the Company is headquartered in Jacksonville, FL. For more
information, please visit http://www.winn-dixie.com/ .
Forward-Looking Statements
Certain statements made in this press release may constitute "forward- looking
statements" within the meaning of the federal securities laws. These
forward-looking statements involve certain risks and uncertainties. Actual
results may differ materially from the expected results described in the
forward-looking statements. These forward-looking statements include and may be
indicated by words or phrases such as "anticipate," "estimate," "plans,"
"expects," "projects," "should," "will," "believes," or "intends" and similar
words and phrases. There are a number of factors that could cause the
Company's actual results to differ materially from the expected results
described in the Company's forward-looking statements.
There can be no assurance that the Company's restructuring will be successful.
Risk factors related to its restructuring efforts that could cause actual
results to differ from these forward-looking statements include, but are not
limited to, the following: the Company's ability to continue as a going
concern; court approval of the Company's motions filed with the bankruptcy
court from time to time; the ability of the Company to operate under the terms
of the Company's DIP facility; the ability of the Company to develop, confirm
and consummate plans of reorganization; risks associated with third parties
seeking and obtaining court approval to terminate or shorten plans of
reorganization, for the appointment of a Chapter 11 trustee or to convert the
cases to Chapter 7 cases; the potential adverse impact of the Chapter 11 cases
on the Company's liquidity and results of operations; the ability of the
Company to obtain and maintain trade credit and shipments and terms with
vendors and service providers for current and future orders and to maintain
in-stock positions for all of its product offerings; the Company's ability to
maintain contracts that are critical to its operations; the ability of the
Company to attract and retain customers; the ability of the Company to attract,
motivate and retain key executives and associates; and potential adverse
publicity.
In addition, the Company faces a number of risks with respect to its continuing
business operations, including but not limited to: the Company's ability to
execute its strategic initiatives, including asset rationalization, store
upgrades, expense reduction, brand positioning and customer service, and to
fund its store upgrades and brand positioning initiatives; the Company's
ability to increase sales and market share through the brand-related
initiatives being tested in the Company's lead markets; the Company's ability
to increase capital spending levels in the future to invest in its store base
and other capital projects; the Company's ability to manage its inventory
efficiently; and the Company's response to the entry of new competitors in its
markets, including traditional grocery store openings and the entry of non-
traditional grocery retailers such as mass merchandisers, supercenters,
warehouse club stores, dollar-discount stores, drug stores and conventional
department stores.
Please refer to discussions of these and other factors in this news release, in
the Company's Annual Report on Form 10-K for the fiscal year ended June 30,
2004, the Quarterly Report on Form 10-Q for the quarter ended January 12, 2005,
and other Company filings with the Securities and Exchange Commission. These
statements are based on current expectations and speak only as of the date of
such statements. The Company undertakes no obligation to publicly revise or
update these forward-looking statements, whether as a result of new
information, future events or otherwise.
DATASOURCE: Winn-Dixie Stores, Inc.
CONTACT: Media, Wendi Kopsick, +1-212-521-4867, or Caroline Gentile,
+1-212-521-4883, or Michael Freitag, +1-212-521-4896, all of Kekst and Company
for Winn-Dixie Stores, Inc.; or investors, +1-212-521-4835
Web site: http://www.winn-dixie.com/