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JACKSONVILLE, Fla. -- A federal bankruptcy judge yesterday approved Winn-Dixie Stores, Inc.'s request for another 70 days to file a reorganization plan. The latest extension pushes the retailer's emergence from bankruptcy to the fall.
Winn-Dixie now has until June 29 to submit a reorganization plan, and its creditors have until Aug. 29 to accept the plan.
Winn-Dixie requested the extension as it hashes out with its creditors what form the reorganization payouts will take, and whether the debts of the company should be consolidated or paid out through each of its 23 operating subsidiaries. Judge Jerry Funk, who approved the motion, asked that Winn-Dixie and its creditors consider using either an independent mediator or mediation process to reach a consensus.
Winn-Dixie said that if it can't reach a consensus by the end of the 70-day extension, it plans to file a compromise reorganization plan.
Winn-Dixie and its subsidiaries filed for reorganization under Chapter 11 of the bankruptcy code on Feb. 21, 2005.