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State Law

: Showmeblawgs

By stan_sipple

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Interstate Bakeries (IBC) requests extension to file chapter 11 reorganization plan. KC Business journal. Interstate Bakeries Corp. wants more time to cook up bankruptcy reorganization options, and its lenders seem to approve. The Kansas City-based baker (OTC: IBCIQ), known for iconic brands such as Hostess and Wonder, said in a late Friday release that it had asked the U.S. Bankruptcy Court in Kansas City to indefinitely continue a hearing that would confirm a plan for the company to emerge from three and a half years of Chapter 11 bankruptcy. The court on Monday approved extending the hearing, which had been scheduled for Wednesday, until a new date that IBC will request.
The company needs more time to continue ongoing talks with groups that could offer reorganization plans and exit financing for IBC to emerge as a stand-alone company. The time would also let IBC continue to pursue a back-up plan to sell all or parts of its businesses and assets, the release said.

IBC let the financing for its previous plan expire because the funding depended on union agreements, which the baker has been unable to reach. The International Brotherhood of Teamsters, which represents about 9,000 of IBC's approximately 25,000 workers, has said it would rather see IBC liquidate than agree to the concessions that came with the company's new business plan.

IBC also said Friday that its existing lenders, plus new ones, agreed that IBC's bankruptcy financing would extend through Sept. 30, instead of expiring on June 2. IBC also could borrow $250 million under the credit facility, up from $200 million.

The new lending agreement is subject to conditions, such as final documentation and bankruptcy court approval, the release said. IBC filed a motion with the court Friday asking for a hearing to get authorization for entering into the amended credit facility. The court scheduled the hearing for 1:30 p.m. on April 29. Objections are due by Friday.

The company on Thursday reported a loss of $67.8 million for the quarter that ended March 8, on sales of $806.3 million.

Full post as published by Showmeblawgs on April 23, 2008 (boomark / email).