US grocery distributor Fleming has filed a US$30.3m administrative expense claim in the bankruptcy case of US convenience store chain Kmart.
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.
Fleming recently announced that its CEO was to resign. To read more on this and the SEC’s accountancy investigation of Fleming, click here.