Well, the SEC did get its filing from the grocery distributor—but it wasn't a 10-K. Instead, Fleming filed an 8-K on Tuesday informing the commission of an unexpected event: the food distributor had filed voluntary petitions for relief under Chapter 11 of the bankruptcy code.
More news came yesterday, when, according to Reuters, Fleming executives said the company had secured a commitment for $50 million in funding to keep its business running until it can get more capital.
The bankruptcy filing came less than two months after Fleming lost a $4.5 billion contract to distribute food to the stores of Kmart Corp., which is also involved in bankruptcy proceedings. In the interim, a previously announced informal inquiry by the SEC was elevated to a formal investigation of the company.
Last November, when Fleming executives first acknowledged the informal probe, they said the investigation was related to press reports of Fleming's vendor-trade practices and its previously reported second-quarter 2001 earnings and 2002 earnings.
In March, CEO Mark Hansen resigned.
Curbing SARS Exposure
Corporate managers are acting quickly to manage the health risks posed by the recent outbreak of severe acute respiratory syndrome (SARS) cases. The quick solution? Curb travel to Asia.
Indeed, 27 percent of 180 organizations responding to a new Business Travel Coalition survey are banning travel to Asian countries. About 8 percent are thinking about a ban. The participating U.S., Canadian, and European companies average 31 round trips to Asian countries per month.
All the organizations banning Asian travel have stopped trips to Hong Kong. Most have halted flights to Singapore (84 percent), China (82 percent), and Vietnam (61 percent).
The response roughly tracks the spread of SARS, an extremely contagious form of pneumonia. To date, the highest numbers of cases have been recorded in China (1,190, including 426 deaths), Hong Kong (708, 16), and Singapore (95, 4), according to the Centers for Disease Control. Health authorities report that they are investigating 72 cases of suspected SARS in the United States.
Airlines in southeast Asia, including Cathay Pacific and Singapore Air, have reportedly cut their number of flights in response to the decrease in business travel to the region.
Short Takes
• Jacques M. Croisetiere has been named CFO and senior vice president of Rohm and Haas Co. Croisetiere, a vice president, European regional director, and business director for process chemicals, will replace Bradley J. Bell. Bell announced that he's resigning next month.
• Jim Dore, corporate controller of Bitstream, a developer of font technology, has been promoted to vice president and CFO. Dore has been working closely with Anna Chagnon. Besides being Bitstream's president and chief operating officer, Chagnon had been CFO since August 1998. She will continue as president and COO.
• Christi Harlan, the SEC's director of public affairs, is leaving after what can be described as 15 fairly turbulent months on the job. Among other things, Harlan acted as commission spokesperson during the flap over William Webster's ill-fated appointment to head the Public Company Accounting Oversight Board (PCAOB). Harlan's new post? Public affairs director for—you guessed it—the PCAOB.
Reader Comments» Post a comment