Winn-Dixie Receives Court Approval for $800 Million Credit Facility
JACKSONVILLE, Fla. -- Winn-Dixie Stores, Inc. said Friday the U.S. Bankruptcy Court granted final approval for its $800 million debtor-in-possession credit facility from Wachovia Bank, N.A. The credit facility, which replaces the chain's previous $600 million credit line, will be used to supplement cash flow during the reorganization process.
The court also granted final approval for a number of other court filings known as "first day motions," which Winn-Dixie said will help it continue to conduct business during the reorganization. The motions approved by the court will allow the chain 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 its customer reward card program.
"We are continuing to make good progress in our reorganization case," said Peter Lynch, president and c.e.o., in a statement.
The court also granted final approval for a number of other court filings known as "first day motions," which Winn-Dixie said will help it continue to conduct business during the reorganization. The motions approved by the court will allow the chain 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 its customer reward card program.
"We are continuing to make good progress in our reorganization case," said Peter Lynch, president and c.e.o., in a statement.