Food distributor Fleming Cos. is expected to receive $37 million in stock in a settlement reached Tuesday with bankrupt Kmart Corp. over the termination of the parties’ supply agreement.
Fleming had been Kmart’s largest supplier and sought about $1.5 billion after Kmart terminated its $4.5 billion, 10-year supply contract with Fleming in January, according to news reports.
ESL Investments Inc. has agreed to buy Fleming’s $37 million in stock for $22 million. ESL and third Avenue Trust planned to invest an additional $293 million in Kmart in exchange for slightly more than 50 percent of its stock and four seats on the board, the report said.
Kmart filed for bankruptcy protection in January 2002.
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