Kansas City / MO. (ibc) Interstate Bakeries Corporation (IBC) emerged from its voluntary Chapter 11 financial reorganization. IBC and eight of its subsidiaries successfully concluded their financial reorganization, having finalized and executed all required financing arrangements, and having satisfied all other conditions that were necessary to put IBC´s Amended Joint Plan of Reorganization into effect.
Importantly, 100 percent of the company´s 423 union locals ratified revised labor agreements that provide the company with operational flexibility needed to deal with evolving market conditions. Additionally, 100 percent of the holders of IBC´s secured debt voted in favor of the Amended Joint Plan of Reorganization, which was confirmed by the U.S. Bankruptcy Court on December 05, 2008.
«Today marks a new beginning for IBC», said Chief Executive Officer Craig Jung. «We are now a stronger and more competitive company. With this period behind us, we can now unleash and empower 22’000 IBC employees to better serve our consumers and customers, revitalize our core brands, and launch product innovation that will profitably grow our business. I want to thank IBC´s employees for the sacrifices they have made and our union leaders for their commitment to our company and saving jobs. Their actions made possible the financing required to execute a business plan that will build competitive advantage and secure our company’s future. I would also like to thank Ripplewood Holdings L.L.C. for their strong commitment to and investment in IBC», he added in a statement.
John Cahill and Greg Murphy, Industrial Partners of Ripplewood, a leading private equity firm: «We are pleased to have closed this transaction. IBC has outstanding brands in the major bread and snack cake categories that we believe best position the Company for future success». Cahill and Murphy will serve on IBC´s Board of Directors as Ripplewood representatives. Cahill was previously Chairman, President and CEO of The Pepsi Bottling Group and Murphy had been President and CEO of Kraft Food Bakery Companies. Both executives have had extensive food and beverage industry experience during their careers.
«I also wish to thank all the other companies who are participating in our new financing, including GE Capital, J.P. Morgan, McDonnell Investment Management LLC, Monarch Alternative Capital L.P. and Silver Point Finance LLC. Finally, I extend sincere thanks to our customers and suppliers, who have supported IBC throughout this process», Jung said. The maker of iconic Wonder Bread and Hostess Twinkies had filed for bankruptcy in September 2004.
