Bankruptcy Judge OKs Fleming Reorganization Plan
DALLAS -- A federal bankruptcy judge confirmed Tuesday the new reorganization plan submitted by bankrupt grocery distributor Fleming Cos., reported the Associated Press.
The plan calls for the remnants of Lewisville, Texas-based Fleming to reorganize into a new company to continue its core business of supplying convenience stores. That new company will be called Core-Mark Holding Co. Inc. Fleming's remaining unsecured creditors will hold most of the new company's common stock, and $320 million in financing has been agreed to.
Fleming's other remaining assets and debt will go to a trust that will liquidate and otherwise manage the distribution of those assets to creditors, Fleming said in a statement Tuesday.
The reorganization plan approved by U.S. Bankruptcy Judge Mary Walrath of Wilmington, Del., is to take effect in the middle of next month, according to the Fleming statement.
Core-Mark will supply convenience stores and retailers in 38 states and five Canadian provinces from 22 distribution centers.
"We are pleased to emerge from bankruptcy as an independent company with a loyal customer base and a strong balance sheet," said J. Michael Walsh, Core-Mark's president and CEO. Walsh has been president and CEO of Core-Mark International, Fleming's South San Francisco, Calif.-based convenience store supply subsidiary.
Fleming filed for bankruptcy protection in April 2003 after losing the business of its biggest customer, Kmart Corp.
The plan calls for the remnants of Lewisville, Texas-based Fleming to reorganize into a new company to continue its core business of supplying convenience stores. That new company will be called Core-Mark Holding Co. Inc. Fleming's remaining unsecured creditors will hold most of the new company's common stock, and $320 million in financing has been agreed to.
Fleming's other remaining assets and debt will go to a trust that will liquidate and otherwise manage the distribution of those assets to creditors, Fleming said in a statement Tuesday.
The reorganization plan approved by U.S. Bankruptcy Judge Mary Walrath of Wilmington, Del., is to take effect in the middle of next month, according to the Fleming statement.
Core-Mark will supply convenience stores and retailers in 38 states and five Canadian provinces from 22 distribution centers.
"We are pleased to emerge from bankruptcy as an independent company with a loyal customer base and a strong balance sheet," said J. Michael Walsh, Core-Mark's president and CEO. Walsh has been president and CEO of Core-Mark International, Fleming's South San Francisco, Calif.-based convenience store supply subsidiary.
Fleming filed for bankruptcy protection in April 2003 after losing the business of its biggest customer, Kmart Corp.