Information for Investors
Background
Since Winn-Dixie voluntarily filed for Chapter 11 on February 21, 2005, we have continued to conduct our business while reorganizing our finances and operations.
Recent Update
Following the November 9, 2006 order by the U.S. Bankruptcy Court for the Middle District of Florida confirming our Plan of Reorganization, the Plan has been declared effective and Winn-Dixie officially emerged from bankruptcy on November 21, 2006.
Common Stock Information
Effective with our emergence, the “old” common stock of Winn-Dixie which was outstanding before we emerged from bankruptcy has been cancelled. The holders of the “old” common stock have not and will not receive a distribution of any kind.
The Company will issue “new” shares of Winn-Dixie common stock within 45 days following the effective date of the Plan to the company’s creditors holding allowed claims. The NASDAQ Stock Market LLC has approved the quotation of the Company’s “new” common stock on the NASDAQ National Market System and has assigned the trading symbol WINN. The common stock currently trades on the NASDAQ Global Market on a when-issued basis under the symbol WINNV.
Please refer to the Company's most recent Forms 10-K and Form 10-Q for risk factors applicable to any investment in the new common stock.
For More Information
If you own shares of the “old” common stock or bonds, you should consult with a financial or tax advisor to assess your personal situation. If you need information about your ownership history of the “old” common stock, please call the Shareholder Services Group at American Stock Transfer & Trust Company (“Amstock”) at 1-888-822-5593.
The registrar/transfer agent for the “new” shares is Amstock.
The company's SEC filings can be obtained from www.sec.gov.
Answers to Frequently Asked Questions About “Old” Winn-Dixie Stock
What was the process for determining to cancel Winn-Dixie common stock?
On June 29, 2006, we filed our proposed Plan of Reorganization, which is the basis for how we resolved creditor claims against the Company and set the stage for our emergence from Chapter 11 on November 21, 2006, following confirmation of the Plan. The bankruptcy code has a number of rules about how these claims must be settled, including a requirement that shareholders must be given a lower priority than secured and unsecured creditors. The level of claims and liabilities when compared to our assets did not allow for a recovery to shareholders.
Why does the press release say that Winn-Dixie provided equity to creditors if the common stock is being cancelled?
Under the Plan of Reorganization, the “old” Winn-Dixie common stock was cancelled when the Plan of Reorganization became effective. The reorganized company will issue “new” common stock to creditors to satisfy their claims in accordance with the Plan of Reorganization.
Why can’t existing stockholders with “old” shares be allowed to exchange them for “new” shares?
The bankruptcy code requires that shareholders must be given a lower priority than secured and unsecured creditors. The level of claims and liabilities when compared to our assets did not allow for a recovery to shareholders.
What are the tax implications to me?
Because the “old” Winn-Dixie common stock has been cancelled, in general you should be able to claim a loss on your investment, which may be used to help offset tax liabilities. However, you should consult your tax advisor or other tax resources to determine how this should be handled on your return.