posted
Seems like you guys are playing with fire....as soon as they emerge from bankruptcy, which should be "the end of October." Just make sure you are out before. Buuuuuuuuut after they come out. I'm all over WNDX. It's a hometown favorite of mine. The work they've done in the last couple of years has been amazing to the customer, which is good news for the shareholder. Look at Publix, Ahold, Ingles, and other supermarket chains. They are holding their own against the supercenters. WNDX is definitely one to keep an eye on.
It says that all shares will be cancelled and new shares will be issued. Buy when they officially emerge from Bankruptcy which should be some time this month.
"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."
Especially this: "Note: Investors should be cautious when buying common stock of companies in Chapter 11 bankruptcy. It is extremely risky and is likely to lead to financial loss. Although a company may emerge from bankruptcy as a viable entity, generally, the creditors and the bondholders become the new owners of the shares. In most instances, the company's plan of reorganization will cancel the existing equity shares. This happens in bankruptcy cases because secured and unsecured creditors are paid from the company's assets before common stockholders. And in situations where shareholders do participate in the plan, their shares are usually subject to substantial dilution."
I mean we all know pinks are risky. But pink Q's are even more so.
posted
it is playing with fire for sure, but for a day or two flip, there's money to be made. i made a mint off ackhq recently. got in and out in about 5 days and made a 4 bagger.
-------------------- Cashing checks in two forms: Money and Reality
GLTA, The Phat Man Posts: 1236 | Registered: Apr 2006
| IP: Logged |
bizjournals.com Bankruptcy judge OKs Winn-Dixie reorganization plan Friday November 10, 12:45 pm ET
A bankruptcy judge has approved Winn-Dixie Stores Inc.'s reorganization plan after about 20 months in Chapter 11 bankruptcy. The ruling was issued Thursday by Judge Jerry Funk of the U.S. Bankruptcy Court for the Middle District of Florida after a confirmation hearing held Oct. 13. Winn-Dixie expects to pull out of bankruptcy within 30 days with $725 million in exit financing from a group of lenders led by Wachovia (NYSE: WB - News). The plan was approved as written except for one overruling to an objection filed by the U.S. Trustee for professional fees resulting from bankruptcy.
ADVERTISEMENT
About 50 objections were filed before the confirmation hearing by individuals, companies and tax collectors. Most were landlords objecting to "unfair treatment" in the reorganization plan. The plan consolidates the assets of the 24 petitions filed during bankruptcy. The unsecured creditors wanted each claim to be treated separately. In October, all nine unsecured creditors eligible to vote on the plan approved it almost unanimously. The least number of votes was from the landlord class at 77 percent approval. They will receive 46.26 shares of new common stock at 70.6 percent recovery.
Winn-Dixie (Pink Sheets: WNDXQ - News) stock will be canceled, and unsecured creditors will receive their portion of newly issued stock based on their classifications once the company emerges from bankruptcy. Secured creditors will receive the full cash amounts outlined in the plan.
The nine new board members named in early October will take over the company once the grocer emerges, led by chairman and CEO Peter Lynch. Winn-Dixie's debt for 2007 up to the next five years is more than $3 billion, including its store leases. It also has a $40 million term loan and $120 million to $140 million in debt in professional fees, claims and contracts arising from bankruptcy.
Published November 10, 2006 by The Business Journal
posted
i got out of this one about a month ago, as soon as I found out they were goining to cancel the stock if they got the ok from the bankruptcy court. I am sure glad I don't have it now Posts: 157 | From: pa, usa | Registered: Oct 2006
| IP: Logged |
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
![[Cool]](cool.gif)
![[Big Grin]](biggrin.gif)
![[Smile]](smile.gif)
