Core-Mark emerges from Chapter 11, remaining Fleming assets put in trust

New York, Aug. 23 - Core-Mark Holding Co., Inc. said it emerged from Chapter 11.

Core-Mark, based in South San Francisco, Calif., was previously a subsidiary of Fleming Cos., Inc. It is now a distributor of consumer packaged goods and store supplies to the convenience retail industry.

Fleming's remaining assets and liabilities not related to the convenience store operations were transferred to either a post-confirmation trust, which will liquidate the assets and liabilities, pursue causes of action and reconcile and pay claims, or a reclamation creditors' trust, which will have similar responsibilities and rights for reclamation creditors.

As part of the reorganization, Core-Mark carried out a corporate restructuring under which Core-Mark International became an indirect subsidiary of a new corporation, Core-Mark Holding Co., Inc.

Unsecured creditors will receive the majority of the common stock of Core-Mark Holding Co., Inc.

As part of its exit, Core-Mark closed on a new $250 million credit facility provided by a syndicate led by GE Commercial Finance. The facility, secured by all assets, along with a $60 million term loan provided by Sankaty Advisors, LLC, is available to Core-Mark to help meet ongoing working capital needs.

Fleming's old common stock was cancelled.

The reorganization plan - the third amended plan - was confirmed by the U.S. Bankruptcy Court for the District of Delaware on July 26. Fleming filed for Chapter 11 on April 1, 2003.

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