Core-Mark Emerges from Protection

On August 23, 2004, Core-Mark Holding Company, Inc. and its subsidiaries emerged from reorganization proceedings under Chapter 11 in the United States and the Companies’ Creditors Arrangement Act in Canada. Concurrent with its emergence, Core-Mark closed on US$310 million in exit financing including a US$250 million syndicated credit facility led by GE Commercial Finance and a US$60 million syndicated second lien term loan facility led by funds affiliated with Sankaty Advisors, LLC.

Core-Mark distributes consumer packaged goods and store supplies to the convenience retail industry, servicing over 19,500 customer locations in 38 states and 5 provinces. It was part of the Fleming Group of companies that filed for bankruptcy protection in April 2003.

Core-Mark and the other Fleming debtors were represented throughout the restructuring in the US by Kirkland & Ellis, with a team that included James Sprayregen, Richard Wynne, Janet Baer, Geoffrey Richards and Maureen Sweeney; and by Laura Davis Jones of Pachulski Stang Ziehl Young Jones & Weintraub in Delaware. In Canada, Core-Mark was represented by Goodmans, with a team that included Jay Carfagnini, Brian Empey, Paul Goldman and Jeffrey Citron; and by Neil Kornfeld, Douglas Hyndman and Carol Kerfoot of Kornfeld Mackoff Silber in Vancouver.

The Official Committee of Unsecured Creditors was represented by Dennis Dunne of Milbank, Tweed, Hadley & McCloy, and Robert Hertzberg of Pepper Hamilton. GE was represented by Richard Denhup of Paul, Hastings, Janofsky & Walker and Peter MacGowan of Blake, Cassels & Graydon. Sankaty was represented during the bankruptcy by Stuart Hirshfield and Marc Skapof of Ropes & Gray, and, in connection with the financing, by Alyson Allen and Andrew Schader, also of Ropes & Gray.