Fleming Companies gains $50 million interim financing
Apr 2, 2003 12:00 PM, from staff and wire reportsFleming Companies Inc announced that in connection with its Chapter 11 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.
“This interim financing represents an important first achievement in our reorganization process,” said Peter Willmott, the firm’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, the pledge to the existing lenders of the company’s unencumbered assets, and other conditions. Under this arrangement, the Lewisville TX-based supermarket supplier will have the right to use cash collateral and the interim DIP prior to the effectiveness of the permanent DIP financing.
Motions to approve the interim DIP commitment and use of cash collateral are expected to be heard by the court April 3, 2003.