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Published on 9/1/2006 in the Prospect News Distressed Debt Daily.

Winn-Dixie pass-through trustee asks court to allow claims for plan voting only

By Caroline Salls

Pittsburgh, Sept. 1 - Winn-Dixie Stores, Inc. pass-through trustee Deutsche Bank Trust Co. Americas asked the U.S. Bankruptcy Court for the Middle District of Florida to temporarily allow its claims for voting on the company's plan of reorganization, according to a Thursday court filing.

According to the filing, Winn-Dixie and Deutsche are negotiating a resolution of their disputes over the calculation and allowance of the Deutsche Bank claims, but it is unlikely that the parties' will resolve the dispute in time to allow Deutsche Bank to participate in the plan-voting process.

Therefore, if the court does not allow the claims for plan voting, Deutsche Bank will be unable to exercise its right to vote on the company's restructuring.

Deutsche Bank said the results of the parties' negotiations or a court-imposed claims resolution process will dictate the amount of Deutsche Bank's claims on a permanent basis when the plan is confirmed.

Winn-Dixie, a Jacksonville, Fla., supermarket company, filed for Chapter 11 on Feb. 21, 2005 in the U.S. Bankruptcy Court for the Southern District of New York. The case was later transferred to the U.S. Bankruptcy Court for the Middle District of Florida. Its Chapter 11 case number is 05-03817.


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