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Judge gives Dixie bankruptcy reorganization extension.

Judge gives Dixie bankruptcy reorganization extension

A New Orleans, LA, bankruptcy court judge last week granted Dixie Brewing Co. another 60 days to draft a bankruptcy reorganization plan, but warned that the new deadline is final.

Dixie filed for Chapter 11 bankruptcy protection from its creditors in May 1989. It was given 120 days to submit a reorganization plan. But as is common in bankruptcies, it received extensions of the 120-day period.

But when Dixie asked last month for another extension--until at least mid-August--one of its largest creditors--the Louisiana Department of Revenue and Taxation--objected.

When it filed for bankruptcy, Dixie owed the state almost $1.6 million in sales, excise and unemployment taxes.

The department asked the court to give Dixie until July 13 to file a plan. If it didn't, the state asked that the Chapter 11 case be converted to a Chapter 7 liquidation proceeding or be dismissed. A dismissal would treat Dixie as if the Chapter 11 filing wasn't made, taking away its protection from creditors' claims.

Judge T.H. Kingsmill Jr. gave Dixie another extension, until Aug. 13. "But this is the last time," he said.
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Title Annotation:Dixie Brewing Co.
Publication:Modern Brewery Age
Date:Jun 25, 1990
Words:190
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