Vendors Shipping Once More to Kmart

Key vendors that supply bankrupt retailer Kmart (KM Quote) have resumed shipping goods, following a judge's approval of a $2 billion rescue package.

A number of key vendors, most notably its food supplier Fleming (FLM Quote), had halted shipments earlier this month as bankruptcy speculation mounted. Fleming is among those that have resumed shipments, after Kmart paid a $78 million bill.

Kmart, which filed for Chapter 11 bankruptcy protection last week, said Tuesday it had received approval from the bankruptcy judge for $2 billion of what is known as debtor-in-possession financing. This so-called DIP financing is secured by Kmart assets such as inventory and puts the bank lenders ahead of other creditors to get paid back. Kmart also said the court approved its plans to exit leases at about 350 underperforming stores, a move that will save the company about $250 million a year. ...