Court tentatively approves Fleming financing
Apr 23, 2003 12:00 PM, from staff and wire reportsFleming Companies Inc has received United States Bankruptcy Court interim approval of its motion for $150 million secured debtor-in-possession financing package, subject to final documentation and budgetary approval by the firm’s DIP lenders.
Until final conditions are met, the Lewisville TX-based supermarket supplier will operate with the $50 million interim bridge financing commitment it received April 3, 2003. The motion also approved creation of a junior trade lien on company assets for use in restoring trade terms from vendors that participate in the vendor support program.
The secured DIP facility will be used to supplement the company’s existing cash flow during restructuring. Interim approval is required before a 15-day waiting period for final approval at a hearing set for May 6, 2003.
Fleming and its operating subsidiaries filed voluntary petitions April 1, 2003, for reorganization under Chapter 11 of the US Bankruptcy Code.