US grocery distributor Fleming has filed a US$30.3m administrative expense claim in the bankruptcy case of US convenience store chain Kmart.
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Fleming is seeking payment for the goods and services it provided to Kmart after the retailer filed for bankruptcy in January 2002.
The two companies entered into a ten-year supply deal in February 2001 that meant Fleming became Kmart’s largest supplier.
On 3 February 2003, a judge involved in the bankruptcy case gave Kmart permission to terminate the contract with Fleming.
In a 32-page filing Fleming said its claims are entitled to so-called ” priority administrative expense status” because they arose from a transaction with Kmart as a debtor in possession and because Fleming “enhanced Kmart’s ability to function as a going concern,” reported Dow Jones Business News.
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By GlobalDataFleming recently announced that its CEO was to resign. To read more on this and the SEC’s accountancy investigation of Fleming, click here.
