Fleming Companies announced that in connection with the company's bankruptcy filing it has received a $50 million interim debtor-in-possession (DIP) financing commitment from its existing lenders as a bridge to a permanent $150 million DIP financing package.
Fleming filed for bankruptcy protection on Tuesday, less than two months after losing its supply contract with Kmart, which accounted for 20 percent of its business.
"This interim financing represents an important first achievement in our reorganization process," said Peter Willmott, Fleming's Interim President and Chief Executive Officer. "With this financing and the support of our vendors, we can deliver on our commitment to provide Fleming's customers with the goods they need, when they need them. To that end, we are developing, in connection with the permanent DIP facility, a vendor support program that will provide important financial assurances to our trade partners.”
The interim DIP commitment is subject to approval of the Bankruptcy Court.
Fleming filed for bankruptcy protection on Tuesday, less than two months after losing its supply contract with Kmart, which accounted for 20 percent of its business.
"This interim financing represents an important first achievement in our reorganization process," said Peter Willmott, Fleming's Interim President and Chief Executive Officer. "With this financing and the support of our vendors, we can deliver on our commitment to provide Fleming's customers with the goods they need, when they need them. To that end, we are developing, in connection with the permanent DIP facility, a vendor support program that will provide important financial assurances to our trade partners.”
The interim DIP commitment is subject to approval of the Bankruptcy Court.
- KC's View:
- From what we hear, another area Fleming has to focus on is creating a more interactive structure with its retail customers. Ultimately, it is their support the company is going to need if it is to survive.
