Interstate Bakeries seeks court OK of $3.65 million store sale

By Caroline Salls

Pittsburgh, Sept. 8 - Interstate Bakeries Corp. requested court approval of the proposed $3.65 million sale of its Portland, Ore., thrift store and depot property to NBS Real Estate Capital Management, LLC, according to a Thursday filing with the U.S. Bankruptcy Court for the Western District of Missouri.

The purchase agreement includes a restrictive covenant that prohibits the use of the property as a commercial bakery for 60 months following closing.

The agreement also includes a six-month depot lease-back provision to allow Interstate to secure more suitable, cost efficient space in the area, as well as an 18-month thrift store lease-back provision.

NBS has paid a $365,000 deposit.

If NBS is not the high bidder at auction, Interstate will pay it a $73,000 termination fee, as well as up to $50,000 for expenses.

The minimum bid at auction will be $3.8 million.

The auction will be held Sept. 22 with the sale hearing scheduled for Sept. 27.

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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