Interstate Bakeries proposes amendments to financial covenants, waivers for delayed filings

By Sara Rosenberg

New York, May 23 - Interstate Bakeries Corp. has proposed an amendment and waiver to its revolving credit facility that would modify some financial covenant levels, including the minimum consolidated EBITDA requirement and maximum capital expenditures, according to an 8-K filed with the Securities and Exchange Commission Monday.

Minimum consolidated EBITDA is hoped to be changed to $3.5 million for the fiscal period ending June 25, $4 million for the fiscal period ending July 23, $8 million for the fiscal period ending Aug. 20, $12.5 million for the fiscal period ending Sept. 17, $18 million for the fiscal period ending Oct. 15, $21 million for the fiscal period ending Nov. 12, $25 million for the fiscal period ending Dec. 10, $23.5 million for the fiscal period ending Jan. 7, 2006, $31.5 million for the fiscal period ending Feb. 4, 2006, and $42.5 million for the fiscal period ending March 4, 2006.

Minimum consolidated EBITDA is also hoped to be changed to $48.5 million for the fiscal period ending April 1, 2006, $58.5 million for the fiscal period ending April 29, 2006, $74 million for the fiscal period ending June 3, 2006, $83 million for the fiscal period ending July 1, 2006, $88.5 million for the fiscal period ending July 29, 2006, $99.5 million for the fiscal period ending Aug. 26, 2006 and $111.5 million for the fiscal period ending Sept. 23, 2006.

Maximum capital expenditures are hoped to be changed to $20 million for the fiscal period of May 29 to Aug. 20, $21.5 million for the fiscal period of Aug. 21 to Nov. 12, $19 million for the fiscal period of Nov. 13 through March 4, 2006, $10 million for the fiscal period of March 5, 2006 to June 3, 2006, $14 million for the fiscal period of June 4, 2006 to Aug. 26, 2006 and $9 million for the fiscal period of Aug. 27, 2006 to Oct. 21, 2006, the filing said.

As for waivers, the company is looking to waive non-compliance with, among other things, failure to timely file its 10-Qs for the second and third quarters of fiscal year 2005, its 10-K for fiscal year 2005, or its 10-Qs for the first and second quarters of fiscal year 2006.

JPMorgan Chase Bank is the administrative agent on the loan.

Interstate Bakeries, a bankrupt Kansas City, Mo.-based wholesale baker and distributor of fresh-baked bread and sweet goods, provided lenders with the proposed draft of amendments and waivers on Monday.

The company filed for Chapter 11 protection on Sept. 22, 2004 in the U.S. Bankruptcy Court for the Western District of Missouri. The case number is 04-45814.

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