A U.S. Bankruptcy judge in Delaware on Monday confirmed Southeastern Grocers LLC’s prepackaged Chapter 11 reorganization plan.
Jacksonville-based Southeastern, parent of Winn-Dixie and three other supermarket chains, expects to emerge from Chapter 11 “in the coming weeks,” the company said in a news release.
Southeastern filed its plan with the U.S. Bankruptcy Court for the District of Delaware on March 27. With most of its creditors approving the plan in advance, the company was able to move quickly through the court process.
U.S. Bankruptcy Judge Mary Walrath confirmed the plan after a hearing in her Wilmington courtroom Monday morning.
Southeastern said it will operate more than 575 stores under the Winn-Dixie, Bi-Lo, Fresco y Más and Harveys banners as it emerges.
The company operated 704 stores when it filed its Chapter 11 petitions and said at the time it planned to close 94 stores and sell others, leaving it with about 580.
The confirmation order does not give details about additional store closings or sales.
The order also doesn’t specify who will own the company when it emerges. Southeastern’s reorganization plan calls for holders of unsecured notes to end up with all of the stock of the company.
The stockholder agreement filed with the confirmation order has language indicating investment firms Fidelity Management & Research Co. and Osterweis Capital Management may own more than 15 percent of the stock, but gives no more details.
Southeastern currently is owned by funds affiliated with investment firm Lone Star Funds.
Under the plan, Lone Star’s equity will be wiped out but it will get a five-year warrant entitling the funds to buy 5 percent of the stock.
The reorganization plan does call for CEO Anthony Hucker to continue running the company.
“We are delighted with the Court's swift approval which marks a major milestone in the transformation and correction of our business,” Hucker said in Monday’s news release.
“This confirmation paves the way for us to emerge as a strong, viable business that is well-positioned to succeed in the competitive retail market.”