Interstate Bakeries obtains extension to DIP facility, exclusive periods

By Jennifer Lanning Drey

Eugene, Ore., Aug. 23 - Interstate Bakeries Corp.'s debtor-in-possession financing facility and exclusive periods were extended by the U.S. Bankruptcy Court for the Western District of Missouri, according to an attorney.

The maturity of the $200 million DIP facility will be extended to June 2, 2007 from Sept. 22, 2006.

Interstate noted that the new termination date will match the end of its 2007 fiscal year.

JPMorgan Chase Bank will stay on board as agent and will syndicate the extended financing facility.

When requesting the extension, Interstate chief executive officer Tony Alvarez said the company believes the terms will provide Interstate the liquidity necessary to complete its restructuring.

The court also extended Interstate's exclusive period to file a plan of reorganization to Jan. 31, 2007 from Sept. 22 and its exclusive period to solicit votes to April 2, 2007 from Nov. 21.

Interstate said previously the additional time will allow it to complete a valuation analysis and explore exit financing alternatives necessary to develop its plan of reorganization.

It will also give time to complete the remaining restructuring efforts, principally the ongoing negotiations with its union-represented employees, the company said in a previously filed motion.

Interstate, a Kansas City, Mo., bakery operator, filed for bankruptcy on Sept. 22, 2004. Its Chapter 11 case number is 04-45814.

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