Boise, Idaho-based Albertsons Companies has announced that the U.S. District Court for the District of Columbia has denied the request by the California, Illinois and District of Columbia attorneys general for a temporary restraining order against the company’s previously announced $6.85 per common share special dividend, originally scheduled to be paid on Nov. 7.
Albertsons Cos. continues to seek to overturn the temporary restraining order granted by the Washington State Court on Nov. 3, which was based on the assertion that payment of the special dividend would impair the company’s ability to compete while its proposed merger with The Kroger Co. is under antitrust review.
This order, which restrains the company from paying the special dividend, remains in effect until Nov. 10 unless within that time, an order is entered extending or dismissing the temporary restraining order.
Albertsons Cos. continues to maintain that the lawsuit brought by Washington is “meritless and provides no legal basis for canceling or postponing a dividend that has been unanimously approved by Albertsons Cos.’ board of directors.”
After payment of the special dividend, Albertsons Cos. will have about $3 billion of liquidity, including $500 million in cash and $2.5 billion available under its asset-based lending facility, and expects to generate revenues and positive free cash flow. The company remains committed to investing in its employees, stores and digital capabilities.
Albertsons Cos. issued a statement on the temporary restraining order when it was filed. To read the full story presented by The Shelby Report, click here.
