IBC: posts larger loss on lower sales

Kansas City / MO. (ibc) For the four weeks that ended January 12, Interstate Bakeries Corporation (IBC) reported a loss of 20,1 million USD, compared with a loss of 18,9 million USD in the prior four weeks. IBC also said in a regulatory filing that it had 187,4 million in sales during the period, down five percent from the prior four weeks. The January sales total is the lowest since the maker of Hostess Twinkies and Wonder Bread filed for bankruptcy protection in September 2004, citing declining sales, a high fixed-cost structure, excess industry capacity, rising employee health-care and pension expenses, and higher costs for ingredients and energy. On January 28, Kansas City based IBC filed a plan to emerge from bankruptcy that would give creditors about 616 million USD in payments. According to the plan unsecured creditors, owed 193,9 million USD, would receive 26,1 percent or 50,6 million USD. A hearing on the confirmation is scheduled for the middle of March.