Post A Reply
my profile
login
|
register
|
search
|
faq
|
forum home
»
Allstocks.com's Bulletin Board
»
Micro Penny Stocks, Penny Stocks $0.10 & Under
»
WNDXQ - Bottom Bounce (0.08)
» Post A Reply
Post A Reply
Login Name:
Password:
Message Icon:
Message:
HTML is not enabled.
UBB Code™ is enabled.
[QUOTE]Originally posted by Squire38: [QB] Here is the link: http://www.winn-dixie.com/company/news/2006/releases/062906.asp WINN-DIXIE FILES PLAN OF REORGANIZATION Plan Developed in Coordination with Creditors Committee, Contains Compromise of Substantive Consolidation Dispute Positions Winn-Dixie to Emerge From Chapter 11 With a Strong Balance Sheet Secures $725 Million Exit Financing Commitment from Wachovia Bank JACKSONVILLE, FL, June 29, 2006 – Winn-Dixie Stores, Inc. today announced that it has filed its proposed Plan of Reorganization and related Disclosure Statement with the U.S. Bankruptcy Court for the Middle District of Florida. With this filing, Winn-Dixie is positioned to emerge from Chapter 11 protection as soon as late October. Winn-Dixie expects to emerge from its reorganization with sufficient financing and liquidity to make significant investments in its current store base, to selectively open new stores, and to take other actions to position the business to compete effectively in its markets over the next several years. The company also expects to emerge with only a minimal amount of long-term debt on its balance sheet. The proposed Plan of Reorganization represents the culmination of extensive negotiations with various creditors and creditor groups in Winn-Dixie's Chapter 11 cases. Creditors have been divided over whether these cases should be substantively consolidated or not. Litigation of that issue would have been complex and expensive, delaying Winn-Dixie’s emergence from Chapter 11 for a substantial period of time. Accordingly, the Official Committee of Unsecured Creditors (the “Creditors Committee”), with Winn-Dixie's support, successfully negotiated a settlement of the substantive consolidation issue. The Creditors Committee and the company have garnered the support of ad hoc committees representing the interests of trade vendors and retirees. Winn-Dixie's Plan of Reorganization incorporates the substantive consolidation settlement. Winn-Dixie also announced today that it has received a commitment for up to $725 million in exit financing from Wachovia Bank. The exit financing, which will replace the company’s current debtor-in-possession (DIP) credit facility on the effective date of a Plan of Reorganization, will increase Winn-Dixie’s cash availability substantially. The financing is subject to the satisfaction of customary conditions. Winn-Dixie President and Chief Executive Officer Peter Lynch said, “The filing of the Plan of Reorganization and Disclosure Statement represents an important milestone in our Chapter 11 cases. We are hopeful that all parties involved in our Chapter 11 cases will agree that this plan represents an appropriate resolution of a variety of complex issues, including potential disputes regarding substantive consolidation.” Lynch continued, “Winn-Dixie now is positioned to emerge from bankruptcy as soon as late October. Upon emergence, Winn-Dixie will be in a stronger and more financially stable position. We will have only a minimal amount of long-term debt on our balance sheet and, between our projected cash flow and new exit financing, we will be able to make significant investments in our stores and our business to ensure that we can continue to provide outstanding service and products to our customers and compete effectively in our markets.” He concluded, “I want to thank our Associates for their unwavering support during this process. Their perseverance and commitment to help Winn-Dixie get better all the time played a significant role in positioning us to emerge in such a positive way. We are also extremely appreciative of our customers and our partners in the vendor and real estate communities for their continued loyalty to Winn-Dixie.” Business Plan The Disclosure Statement filed today includes a discussion of Winn-Dixie’s five-year business plan, which is designed to position the company to compete successfully by delivering high-quality products and customer service with competitive pricing. The business plan highlights the many actions the company has already taken to enhance its operational and financial performance. These include numerous merchandising and marketing initiatives, such as a focus on improving the perishables offering to reinforce the stores’ image of freshness and quality and communicating the branding message of “Getting better all the time” to reflect the improvements that are being made in the stores and throughout the company. Other major completed actions include a reduction of the store footprint to focus on regions where Winn-Dixie’s market share and profitability provide the best foundation for growth, a major redesign of the field and corporate overhead structure, and an annual cost reduction of approximately $100 million. As a result of these initiatives, Winn-Dixie has reported improved financial results and sales growth in recent periods. For the quarters ended January 11, 2006 and April 15, 2006, the company reported year-over-year increases in identical store sales of 7.3% and 6.7%, respectively. In its business plan, Winn-Dixie projects additional growth in revenue (fueled by continued increases in identical store sales and, beginning in 2008, new store openings), gross margin and EBIDTA (earnings before interest, taxes, depreciation and amortization) during the five-year period. The Disclosure Statement also includes information about the proposed Plan of Reorganization, financial estimates regarding the company’s reorganized business enterprise value, and events leading up to and during the company’s Chapter 11 cases. Approval of the Disclosure Statement and related voting solicitation procedures, which Winn-Dixie will seek at a Bankruptcy Court hearing scheduled for August 4, 2006, will permit the company to solicit acceptances for the proposed Plan of Reorganization and seek confirmation of the proposed Plan of Reorganization by the Bankruptcy Court. Assuming these milestones are achieved, Winn-Dixie expects to emerge from Chapter 11 reorganization as soon as late October 2006. The company’s Chapter 11 cases are being presided over by the Honorable Jerry A. Funk, United States Bankruptcy Judge for the Middle District of Florida. Lynch said, “In the 16 months since Winn-Dixie filed for Chapter 11 protection, the company has made tremendous progress in addressing its operational and financial challenges. In particular, there has been a tangible improvement in customer service, Associate morale, and the quality of the product offering – particularly in perishables. All of this has led to significant increases in identical store sales in recent months and improving gross margin. I look forward to seeing what our talented and dedicated Associates can accomplish once they are no longer held back by the constraints of Chapter 11.” Details of Proposed Plan of Reorganization The Plan of Reorganization and Disclosure Statement may be modified prior to the approval of the Disclosure Statement and as a result of the confirmation process. Key elements of the Plan of Reorganization, as currently proposed and subject to approval by the Bankruptcy Court, include: The company and its subsidiaries will be deemed substantively consolidated for purposes of the Plan of Reorganization and distribution under the Plan of Reorganization in accordance with the settlement negotiated by the Creditors Committee, which include different levels of recovery for different categories of unsecured creditors, based on their relative rights and the strengths of their positions on the substantive consolidation issue and other matters. Substantially all of the unsecured liabilities of the company will be discharged in exchange for distribution of common equity of the reorganized company, allocated to the unsecured creditors in accordance with the substantive consolidation compromise. A portion of the common equity of the reorganized company will be set aside for use in a long-term incentive plan to be provided to certain key Winn-Dixie Associates. That plan may consist of a combination of stock grants and options. The participants in that plan and the awards for each participant will generally be determined by a newly constituted Board of Directors. On the effective date of the Plan of Reorganization, a new Board of Directors will be appointed. The initial New Board will be comprised of nine directors. Administrative claims and priority claims will be paid in full as required by the Bankruptcy Code, unless otherwise agreed by the holders of such claims. Secured claims may be reinstated on original terms, satisfied on deferred payment terms, or paid in full at the election of the company. Certain creditors with 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 claims under $100 will be paid in cash, in full. Current holders of Winn-Dixie’s equity will not receive any distributions following emergence and their equity interests will be cancelled once the Plan of Reorganization becomes effective. Similarly, subordinated claims, including stock-related claims, will not receive any distributions and will be discharged. CEO Retention The Winn-Dixie Board believes it is in the best interest of the reorganized company to enter into a new employment agreement with Peter Lynch, pursuant to which he will continue to serve as the President and Chief Executive Officer of Winn-Dixie after the Effective Date of the Plan of Reorganization. Lynch has expressed a strong desire to continue serving in these roles after the company emerges from Chapter 11. To this end, the Winn-Dixie Board, Creditors Committee and Lynch are negotiating the terms of a new employment agreement for Lynch. His current retention agreement expires on August 31, 2006. 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. The company currently operates 527 stores in Florida, Alabama, Louisiana, Georgia, and Mississippi, as well as 12 stores in the Bahamas that are in the process of being sold. For more information, please visit [URL=http://www.winn-dixie.com.]www.winn-dixie.com.[/URL] [/QB][/QUOTE]
Instant Graemlins
Instant UBB Code™
What is UBB Code™?
Options
Disable Graemlins in this post.
*** Click here to review this topic. ***
Contact Us
|
Allstocks.com Message Board Home
© 1997 - 2021 Allstocks.com. All rights reserved.
Powered by
Infopop Corporation
UBB.classic™ 6.7.2