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JACKSONVILLE, Fla. – After dealing with its share of bankruptcy-related challenges, Winn-Dixie Stores, Inc. got a major break on Friday, as the U.S. Bankruptcy Court approved a trade creditors payment program that will free up credit and provide the retailer with about $100 million in liquidity.
Under the agreement, Winn-Dixie's major vendors will be paid on a monthly basis for products that were delivered to its stores in February. Winn-Dixie will have nine months to make the payments. The retailer will also receive a favorable trade credit for new merchandise.
The program was designed to help Winn-Dixie settle $129 million in vendor claims. As of Friday, about 100 vendors had already shown interest in participating, according to an Associated Press report.
Also on Friday, the Bankruptcy Court approved the sale of more than 20 stores to retailers including Bi-Lo, Food Lion, Publix, Ingles Markets, Tom-Tom Foods, Inc., and Y.M. Lee, Inc. During the three days of hearings, Winn-Dixie sold 84 stores for a total of $42.8 million.