Interstate Bakeries cancels auction with no competing plan proposals; disclosure hearing Jan. 29

By Caroline Salls

Pittsburgh, Jan. 17 - Interstate Bakeries Corp. said it did not received any qualifying alternative proposals for funding its plan of reorganization by the Jan. 15 deadline, so the Jan. 22 auction will be cancelled and a hearing to approve Interstate's disclosure statement for its plan of reorganization will be held Jan. 29.

According to a company news release, Interstate confirmed that it did not received a joint plan of reorganization from the Yucaipa Cos. and the International Brotherhood of Teamsters, which submitted a preliminary indication of interest describing a possible plan of reorganization in December.

As previously reported, Interstate has modified the collective bargaining units with all of its unions except the Teamsters, which Interstate said has refused to hold any discussions with the company since mid-October.

Interstate said it is still exploring its strategic alternatives, including a possible sale of all or part of its operations that may be necessary if the Teamsters do not agree to an amended contract.

Interstate said is in working with some of its constituent groups, and it expects to file an amended disclosure statement before the Jan. 29 hearing.

Interstate, a Kansas City, Mo., bakery operator, filed for bankruptcy on Sept. 22, 2004. 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.