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Interstate Bakeries amends DIP to resolve status of American Bakers Association retirement plan
By Caroline Salls
Pittsburgh, Dec. 30 - Interstate Bakeries Corp. entered into the fifth amendment to its debtor-in-possession revolving credit facility with JPMorgan Chase Bank, NA that lets the company continue to seek a resolution on the status of the American Bakers Association retirement plan as either a multiple employer plan or a group of single employer plans, according to an 8-K filing with the Securities and Exchange Commission.
The resolution would also provide the company with information on the potential impact the pension plan could have on its financial operations.
The amendment adds express references to the ABA pension plan and limited cushions, which give the company latitude on an inquiry into the proper status of the plan.
In addition, the amendment restates a section of the DIP agreement that says the company will not permit cumulative consolidated EBITDA during a given monthly fiscal period to be less than specified fixed amounts, retroactively effective Nov. 12.
The amendment also suspends the requirement that Interstate comply with specific covenant levels in the DIP agreement. Beginning with the fiscal period ended Dec. 10 and closing with the fiscal period ending June 3, 2006, the company will not be required to comply with the covenant levels until the net total usage exceeds $50 million.
As of Dec. 30, net total usage under the DIP agreement was $21.8 million.
The Kansas City, Mo., bakery operator filed for Chapter 11 protection on Sept. 22, 2004 in the U.S. Bankruptcy Court for the Western District of Missouri. Its case number is 04-45814.
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