IBC: court approves Disclosure Statement

Kansas City / MO. (ibc) Interstate Bakeries Corporation (IBC) announced that the U.S. Bankruptcy Court for the Western District of Missouri in Kansas City has ruled that the Company´s First Amended Disclosure Statement contains adequate information for the purpose of soliciting creditor approval for the Plan of Reorganization. The Company expects that the Plan materials and ballots will be mailed by February 04. The deadline for returning the ballots is March 03. A hearing to confirm the Plan is scheduled for March 12.

The cornerstone of the amended Plan of Reorganization is the commitment by Silver Point Finance, L.L.C. to provide the Company with up to 400 million USD in exit financing upon IBC´s emergence from Chapter 11 and the agreement by holders of approximately 95 percent of the Company´s pre-petition senior credit facility to support the Plan of Reorganization. The amended Plan of Reorganization remains contingent on the Company reaching a mutually acceptable agreement with the International Brotherhood of Teamsters.

«We are pleased that the Court approved our Disclosure Statement, as that means we continue to have a credible business plan capable of paving our emergence from Chapter 11 and achieving sustainable profitability», said Chief Executive Officer Craig Jung. «The Court´s approval of the Company´s Disclosure Statement also means that Silver Point´s committed financing will remain in place and available until March 14.

«Our sincere hope is that the Teamsters understand that management continues to be available and open to reaching a mutually acceptable agreement with Teamsters Union leadership, or alternatively that a plan of reorganization is proposed that provides the same or greater value to our constituents, has committed financing, and has the support of all our unions», Jung said.

The Company continues to believe that its Plan of Reorganization represents the best alternative to maximize value for its constituents in the Bankruptcy process, build competitive advantage and secure jobs for 24.000 IBC employees. At the same time, the Company said it continues to explore other alternatives to maximize creditor recovery in the event a Plan of Reorganization that allows the entire Company to emerge from Chapter 11 as a single entity cannot be implemented, including a potential sale of the Company in its entirety or in a series of transactions.

bakenet:eu