Boise, Idaho-based Albertsons Cos. has announced that the Washington State Court has postponed the date of the hearing regarding the temporary restraining order granted to Washington until Dec. 9.
As a result of this postponement, the temporary restraining order granted by Washington on Nov. 3 remains in effect and restrains the company from paying the previously announced $6.85 per share special dividend to stockholders of record as of the close of business on Oct. 24.
Albertsons Cos. will continue to seek to overturn the temporary restraining order, 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.
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.
