Winn-Dixie Reorganization

By: Associated Press
By: Associated Press

Winn-Dixie's creditors want a bankruptcy judge to give them all the supermarket chain's stock -- which would leave its current stockholders with nothing.

The creditors committee's demand is contained in court documents in which they oppose Winn-Dixie's third request for a 90-day extension to file a business plan. The creditors say the supermarket giant should only be granted another 30-day extension.

In a Chapter eleven reorganization case, secured and unsecured creditors are paid before stockholders since shareholders are the owners of the company. If there isn't enough money to pay the creditors, they are sometimes issued common stock.

In over-the-counter trading today, Winn-Dixie shares were trading at 85 cents per share, down nine cents.

The creditors committee has also tried to have a committee of shareholders dissolved. The issue is still before a U-S District Bankruptcy judge.

A hearing on the extension is scheduled for tomorrow.

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