Interstate Bakeries gets OK to proceed with reorganization plan

[Omaha Steve]

http://www.kansascity.com/business/story/466407.html

y JENNIFER MANN
The Kansas City Star

A bankruptcy judge in Kansas City has given Interstate Bakeries Corp. permission to send out its disclosure statement, including its plan of reorganization, to creditors for a vote.

The move comes 3 ½ years after the Kansas City-based maker of iconic brands such as Wonder bread and Hostess Twinkies filed for bankruptcy protection amid declining sales and rising costs.

The plan goes out to creditors with at least one significant issue unresolved – an agreement with the International Brotherhood of Teamsters that IBC says it needs to implement a new delivery system that will give it a chance at future success.

At the insistence of the Teamsters, IBC agreed to insert language in its disclosure statement – a document that contains all the information necessary for a creditor to decide whether to vote for the plan or not – that makes clear that IBC and the Teamsters have not had substantive discussions since October.

The plan calls for Interstate’s lenders to receive a full recovery of the $450 million the group is owed in the form of new stock. Other creditors, according to the plan, are slated to receive anywhere from 30 cents on the dollar to nothing.

To reach Jennifer Mann, call 816-234-4453 or send e-mail to [e-mail]