U.S. District Court for District of Columbia denies temporary restraining order against Albertsons’ special dividend payment
Albertsons today 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, 2022.
Albertsons continues to seek to overturn the existing temporary restraining order granted by the Washington State Court on Nov. 3, which was based on the incorrect assertion that payment of the Special Dividend would impair the company’s ability to compete while its proposed merger with Kroger is under antitrust review, Albertsons said.
[Read more: Kroger to acquire Albertsons for $24.6B]
This order, which restrains the company from paying the Special Dividend, remains in effect until Nov. 10, 2022, unless within that time, an order is entered extending or dismissing the temporary restraining order.
Albertsons said that it continues to maintain that the lawsuit brought by the state of Washington is meritless and provides no legal basis for canceling or postponing a dividend that has been duly and unanimously approved by Albertsons’ fully informed board of directors. After payment of the Special Dividend, Albertsons will have approximately $3 billion of liquidity, including approximately $500 million in cash and approximately $2.5 billion available under its already existing asset-based lending facility, and expects to continue to generate strong revenues and positive free cash flow, further increasing liquidity.
Albertsons is confident that it will continue to make strategic progress following the payment of the Special Dividend, given its strong cash flows and low debt profile, the company said.
[Read more: State attorney generals asking Albertsons to delay $4B stockholder payout]
The company also said that it remains fully committed to investing in the associates, stores and digital capabilities that have made its recent growth and strong performance possible.