Core-Mark begins accepting bids, evaluates reorganization options

By Carlise Newman

Chicago, Oct. 1 - Core-Mark International Inc., a subsidiary of Fleming Cos. Inc., said it is evaluating options that include the sale of its business as well as reorganization.

Starting Wednesday, Core-Mark began to accept bids from parties interested in purchasing the business and explore reorganization alternatives. Preliminary non-binding indications of interest from first-round participants for the acquisition of the business are due by Nov. 3.

The Blackstone Group will be managing the sales process. It is anticipated that final bids will be due in December.

At the end of the bidding process, Core-Mark will consider the bids and the reorganization alternatives and finalize its strategy for emerging from Chapter 11.

Core-Mark said the step follows a successful stabilization of its operations and the improved performance of its convenience distribution business.

During the third quarter, San Francisco-based Core-Mark's overall fill rate exceeded 98% and it has continued to sustain positive cash flow since Fleming and Core-Mark filed for Chapter 11 bankruptcy protection on April 1.

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