San Jose Bankruptcy Attorney Discusses Federal Judge Says Winn-Dixie Can Emerge From Chapter 11 Bankruptcy Protection
San Jose Bankruptcy Attorney Discusses Federal Judge Says Winn-Dixie Can Emerge From Chapter 11 Bankruptcy Protection
Last week, U.S. Bankruptcy Judge Jerry Funk said that he was approving Winn-Dixie Stores, Inc.’s plan to emerge from bankruptcy protection in 30 days. Judge Funk said the supermarket chain had fulfilled the legal requirements to exit from Chapter 11 reorganization and could do so after it receives more than $700 million in exit financing from Wachovia Corp.
Winn-Dixie plans to invest in its current stores and open new stores. The company had filed for Chapter 11 Bankruptcy last year when it sold warehouses and closed down hundreds of stores. Winn-Dixie is one of the largest food retailers in the United States.
U.S. Courts.gov provides information about the reorganization plan when filing for chapter 11 Bankruptcy:
Acceptance of the Plan of Reorganization
As noted earlier, only the debtor may file a plan of reorganization during the first 120-day period after the petition is filed (or after entry of the order for relief, if an involuntary petition was filed). The court may grant extension of this exclusive period up to 18 months after the petition date. In addition, the debtor has 180 days after the petition date or entry of the order for relief to obtain acceptances of its plan. 11 U.S.C. § 1121. The court may extend (up to 20 months) or reduce this acceptance exclusive period for cause. 11 U.S.C. § 1121(d). In practice, debtors typically seek extensions of both the plan filing and plan acceptance deadlines at the same time so that any order sought from the court allows the debtor two months to seek acceptances after filing a plan before any competing plan can be filed.
