Interstate Bakeries requests court OK of $1.3 million Matteson property sale

By Caroline Salls

Pittsburgh, July 20 - Interstate Bakeries Corp. requested court approval of the proposed $1.3 million sale of its Matteson, Ill., property to stalking horse bidder Realty American Group (Lincoln Mall), LP, according to a Thursday filing with the U.S. Bankruptcy Court for the Western District of Missouri.

Realty American Group paid a $130,000 escrow deposit.

A sale hearing is scheduled for Aug. 9.

Because of a potential eminent domain proceeding, Interstate Bakeries said it does not expect to seek higher offers for the property.

On April 4, the Illinois senate passed legislation that would allow the Village of Matteson to institute quick-take eminent domain proceedings, which the company said reduces the ability to market the property to third parties and would not include any assurance that the company could find substitute property to continue operations there.

As a result, the purchase agreement calls for the purchase price to be transferred to an escrow account so Interstate can build a new depot and perform improvements on a new store.

In the meantime, the buyer will lease the Matteson property back to Interstate. Interstate will not pay rent during the lease period but will pay some of the taxes on the property.

The 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.