Fleming set to exit Chapter 11

MMR,  August 9, 2004  

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DALLAS -- Fleming Cos. expects to exit bankruptcy in mid-August. The company will then be called Core-Mark Holding Co. It will distribute products to convenience stores and other retailers from 22 distribution centers that service customers in 38 states and five Canadian provinces.

Fleming filed for Chapter 11 bankruptcy in April 2003 after Kmart Corp., its biggest customer, ended its distribution agreement with the chain.

In late July the United States Bankruptcy Court in Delaware approved Fleming's plan for getting out of bankruptcy. "We appreciate the strong support for our plan of reorganization by creditors and lenders," notes Archie Dykes, Fleming's chief executive officer. "They have been cooperative and constructive partners throughout the reorganization. We also are grateful to our customers and our associates for their support in the bankruptcy period."

Under the plan unsecured creditors will receive most of the common stock of Core-Mark. Two companies have agreed to provide financing. General Electric Capital Corp. will provide a $240 million revolving-credit facility and a $10 million term loan. Sankaty Advisors LLC's commitment consists of an additional $70 million term-loan facility.

"We are pleased to emerge from bankruptcy as an independent company with a loyal customer base and a strong balance sheet," notes Mike Walsh, CoreMark's president and chief executive officer. "We are looking forward to working with our new board of directors to drive our business forward."

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