Interstate Bakeries asks court to force Yucaipa, Bimbo to disclose terms of agreement with Teamsters

By Jennifer Lanning Drey

Portland, Ore., Nov. 26 - Interstate Bakeries Corp. asked the U.S. Bankruptcy Court for the Western District of Missouri to force Yucaipa Cos., LLC and Bimbo Bakeries USA, Inc. to produce documents related to their agreement with the International Brotherhood of Teamsters, according to a Monday filing with the court.

Yucaipa, Bimbo and the Teamsters have partnered to act as a prospective bidder in the sale of Interstate, which is already lined up to receive $400 million in exit financing through a deal with stalking horse bidder specialty lender Silver Point Finance LLC.

According to Interstate, the company needs to understand the nature of the agreement between Yucaipa, Bimbo and the Teamsters in order to ensure that the competitive bidding process is fair and free from collusion, according to the filing.

Specifically, the company seeks to define whether the agreement is truly exclusive, as Yucaipa has claimed.

Interstate is concerned that potential competing bidders may be dissuaded from participating in the ongoing auction process as a result of Yucaipa's claim of an "exclusive agreement" with the Teamsters.

The Kansas City, Mo., bakery operator filed for bankruptcy on Sept. 22, 2004 in the U.S. Bankruptcy Court for the Western District of Missouri. Its Chapter 11 case number is 04-45814.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.