Dow Jones reports that two units of General Electric Co., GE Consumer Products and GE Distribution Finance, are opposing the terms of Fleming Cos.’ debtor-in-possession (DIP) financing agreement, saying that they object to the use of any proceeds that could be considered their collateral.
The federal court overseeing Fleming’s bankruptcy will consider the objections in a hearing set for today.
The GE objection says that because the company sold light bulbs to Fleming on consignment, after the wholesaler filed for bankruptcy it believed that Fleming should segregate and escrow receivables and consigned inventory.
Fleming has interim approval of a $50 million DIP financing loan, and an agreement in principle on a final $150 million DIP in financing.
In addition, Fleming’s financing plans are objected to by two landlords that are concerned about getting paid, and by the Minnesota Twins baseball team.
The Twins want to force Fleming’s Rainbow Foods affiliate to be responsible for a $265,000 sponsorship/advertising contract.
The federal court overseeing Fleming’s bankruptcy will consider the objections in a hearing set for today.
The GE objection says that because the company sold light bulbs to Fleming on consignment, after the wholesaler filed for bankruptcy it believed that Fleming should segregate and escrow receivables and consigned inventory.
Fleming has interim approval of a $50 million DIP financing loan, and an agreement in principle on a final $150 million DIP in financing.
In addition, Fleming’s financing plans are objected to by two landlords that are concerned about getting paid, and by the Minnesota Twins baseball team.
The Twins want to force Fleming’s Rainbow Foods affiliate to be responsible for a $265,000 sponsorship/advertising contract.
- KC's View:
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The Twins have bigger problems…like being close to being mathematically eliminated from the pennant race just a week into the season.
Actually, that’s a cheap joke…and not accurate. The Twins’s record for the 2003 season is just one game worse than the Mets’…and their winning percentage is better than the Braves’.
It’s the 0-7 Detroit Tigers that already are out of the pennant race. Seriously.
But we digress…
