SOUTH SAN FRANCISCO, Calif. -- The disintegration of Fleming, once one of the nation's largest food wholesalers, is nearly complete.
of a new corporation, Core-Mark Holding.
"Although the last 15-1/2 months have been a challenge, we believe the experience has made us much stronger and more committed to the customer service values which made this company successful," said Mike Walsh, president and chief executive officer, Core-Mark.
As previously reported, the U.S. Bankruptcy Court, Wilmington, Del., approved Fleming's reorganization plan last month. Unsecured creditors will get most of the common stock of the new entity, which will focus on distribution to c-stores. The new shares of Core-Mark will be listed on a national exchange as early as the fourth quarter, the company said.
Fleming's common stock was canceled. Its remaining assets and liabilities unrelated to the convenience operations have been transferred to two trusts for disbursement to certain creditors.
Fleming, Dallas, filed for Chapter 11 in April 2003 after the bankruptcy filing of its largest customer, Kmart Corp., Troy, Mich., the deterioration of its retail operations and allegations of accounting improprieties. Much of its supermarket-distribution operations were acquired last year by C&S Wholesale Grocers, Keene, N.H., which distributed some to other wholesalers.
Core-Mark said Edward J. Stenger, Rebecca A. Roof and Michael Scott, who served as Fleming's chief restructuring officer, interim chief financial officer and treasurer, respectively, have left the company. Thomas A. Morrow, Core-Mark's chief restructuring officer, has also left.
Core-Mark will be supported by a new $250 million credit facility from a syndicate led by GE Commercial Finance and a $60 million term loan from Sankaty Advisors. The company said it serves 19,500 locations -- including c-stores, mass merchants, drug stores, liquor stores and specialty stores -- in 38 states and five Canadian provinces.
