SOURCE: Fleming Post Confirmation Trust

February 23, 2007 16:25 ET

Fleming Post Confirmation Trust Commences First Cash Distribution; Announces Settlement of Litigation

OKLAHOMA CITY, OK -- (MARKET WIRE) -- February 23, 2007 -- Today the Post Confirmation Trust for Fleming Companies, Inc. ("the PCT") announced that it has commenced its First Cash Distribution. The PCT is distributing 2.5 cents for each $1 of Allowed General Unsecured Claims, as approved by the Bankruptcy Court. The First Cash Distribution could aggregate up to $60 million, based upon the maximum General Unsecured Claims pool of $2.4 billion approved by the Court.

The PCT also announced that it will shortly distribute additional shares of Core-Mark stock on account of Allowed General Unsecured Claims. That additional distribution will implement the recently approved reduction in the reserve maintained for disputed and unresolved general unsecured claims. As a result of the reduction of the reserve, the PCT will distribute Core-Mark stock based upon a maximum pool of General Unsecured Claims of $2.4 billion.

Cash and shares will be distributed pursuant to the Third Amended and Revised Joint Plan of Reorganization of Fleming Companies, Inc. and Its Filing Subsidiaries (the "Plan") and court order.

The PCT advises that most holders of Allowed General Unsecured Claims have already provided the PCT with all necessary Tax Identification Numbers. Cash distributions allocable to those remaining holders of Allowed General Unsecured Claims which have not yet provided the requisite tax information to the PCT may be subject to withholding and delay. Furthermore, such holders also may be prohibited from the collection of Core-Mark stock. Those holders are urged to respond to PCT correspondence seeking the requisite tax information. Holders may contact the PCT to provide updated address information or to obtain the requisite tax forms at (972) 535-7149.

Interested parties may review relevant court documents, including the PCT's Post-Confirmation Quarterly Summary Report for the quarter ended December 31, 2006. That report, together with other materials reflected in the court docket, can be found on our claims agent's website, www.bmccorp.net/fleming.

Settlement of Litigation

The PCT also announced that it has settled its remaining litigation regarding the misstatement of Fleming's financial statements. Upon completion of documentation, the remaining litigation in United States Federal Court in the Eastern District of Texas will be dismissed. Proceeds from the settlement are expected to be received during the second quarter of 2007. The financial terms of the settlement are confidential and will not be disclosed.

Contact Information

  • Contact:
    Stewart Terbush
    972-535-7149