Winn-Dixie and its creditors have now agreed on how to consolidate the debts. At a hearing last week at the U.S. Middle District of Florida bankruptcy court the grocer’s creditors finally came to agreement on the issue that had divided the creditors.
Winn-Dixie filed an objection to the ad-hoc committee’s plan for substantive consolidation claiming that this plan violated Win Dixie’s rights to file their own plan. Though Winn-Dixie will not comment on it’s objection to the ad hoc committee’s plan, the 14-page objection states that Winn-Dixie already has a substantive consolidation plan proposed that already has creditor support.
The new agreement maintains the timeline Winn-Dixie set forth earlier. Next week Winn-Dixie will file the reorganization plan, with a disclosure statement going to the creditors in early August. At that point in time, the creditors will vote on the plan, either rejecting or accepting the plan. ■
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