Winn-Dixie to distribute 6.5 million shares in Q4

Jacksonville, Fla. Winn-Dixie Stores said Wednesday that it expects to distribute about 6.5 million shares during its fourth quarter under a plan of reorganization.

The shares are currently held in reserve to settle outstanding pre-petition bankruptcy claims.

The company decided its bankruptcy share reserve contains more shares than it needs to resolve the remaining unsecured pre-petition claims against the grocer.

Winn-Dixie said it will not receive any proceeds from this distribution and there will be no impact on the company's financial statements.