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NEW YORK -- Bankrupt grocery distributor Fleming Cos. said secured a commitment for $50 million in interim funding as a bridge until it gets its $150 million debtor-in-possession financing.
The interim debtor-in-possession, or DIP, commitment is subject to approval of the bankruptcy court. DIP is special financing to ensure that creditors and suppliers are paid.
Under this arrangement, the company will have the right to use cash collateral and the interim DIP before the permanent DIP is available. Motions to approve the interim DIP commitment and use of cash collateral are expected to be heard by the bankruptcy court on April 3, Fleming said.
Fleming filed for Chapter 11 bankruptcy protection on Tuesday, less than two months after it lost a key 10-year, $4.5 billion contract to supply Kmart Corp.'s supermarkets.