Kmart Faces $1.5 Billion in Claims by Fleming
NEW YORK - Food supplier Fleming filed nearly $1.5 billion in claims Tuesday against former client Kmart and expects to file an additional claim with the bankruptcy court today.
As reported in USA Today, Fleming claims Kmart owes for:
-- Bills for $27 million not paid before Kmart filed for bankruptcy protection on Jan. 22, 2002. This amount is in addition to $76 million Kmart paid Fleming days after the filing to keep it as a critical vendor, says Fleming spokesman Shane Boyd.
-- Damages of $1.4 billion for losses from Kmart breaching the supply agreement through bankruptcy protection, including lost profits and payments it owes for unneeded facilities. Kmart will take its last shipment on Sunday.
-- About $30 million for costs after Kmart's filing. This ''post-petition'' claim is expected to be filed today.
As reported in USA Today, Fleming claims Kmart owes for:
-- Bills for $27 million not paid before Kmart filed for bankruptcy protection on Jan. 22, 2002. This amount is in addition to $76 million Kmart paid Fleming days after the filing to keep it as a critical vendor, says Fleming spokesman Shane Boyd.
-- Damages of $1.4 billion for losses from Kmart breaching the supply agreement through bankruptcy protection, including lost profits and payments it owes for unneeded facilities. Kmart will take its last shipment on Sunday.
-- About $30 million for costs after Kmart's filing. This ''post-petition'' claim is expected to be filed today.