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Yucaipa slams Interstate Bakeries disclosure statement, calls plan vote solicitation 'waste of estate assets'
By Caroline Salls
Pittsburgh, Jan. 15 - The Yucaipa Cos. LLC objected to Interstate Bakeries Corp.'s disclosure statement, arguing that the related plan of reorganization is not confirmable because it lacks the support of the Teamsters union, according to a Tuesday filing with the U.S. Bankruptcy Court for the Western District of New York.
Yucaipa said the plan is based entirely on a business plan that requires massive concessions from the International Brotherhood of Teamsters, but the Teamsters prefer liquidation of the company to the terms of the proposed business plan.
According to the objection, since the company has not reached an agreement with the Teamsters on a new business plan "during the lengthy term of these cases," there is no reason to expect the parties to agree on a business plan while votes are being solicited on Interstate's plan of reorganization.
As a result, Yucaipa said soliciting plan votes "would be a useless expense to the debtors' estate and a waste of estate assets."
As previously reported, Yucaipa and the Teamsters made their own plan proposal in December, but the company said the offer did not include enough information to qualify as a competing proposal.
All competing plan of reorganization proposals were due Jan. 15.
If multiple offers are received, an auction will be held on Jan. 22, and the hearing on approval of the highest offer will be held Jan. 29. The disclosure statement hearing is also scheduled for Jan. 29.
The Kansas City, Mo., bakery operator filed for bankruptcy on Sept. 22, 2004. Its Chapter 11 case number is 04-45814.
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