Winn-Dixie case moving to its home turf

The United States Bankruptcy Court has agreed to transfer Winn-Dixie Stores Inc's Chapter 11 case from the Southern District of New York to the Jacksonville Division of the Middle District of Florida.

Judge Robert D Drain of the Southern District of New York ordered that the Winn-Dixie proceedings be moved to Jacksonville after an orderly transition. Winn-Dixie does not expect that this transition will significantly delay or otherwise materially affect its reorganization.

This ruling followed an April 12 hearing at which a number of creditors argued in favor of moving the case to Jacksonville, site of Winn-Dixie's headquarters. A number of others, including the official committee of unsecured creditors, argued in favor of having the case remain in New York. Winn-Dixie had requested that the court transfer its case to Jacksonville after determining that this matter was threatening to disrupt Chapter 11 proceedings.

In his ruling, Drain noted that the record of the court hearing demonstrated that Winn-Dixie's initial decision to file its case in New York was made "entirely in good faith," and contrary to reports suggesting otherwise, was "not an attempt to hide anything" from creditors or other parties nor an attempt to obtain favorable treatment from the court.