Kansas City / MO. (wib) Interstate Bakeries Corporation (IBC) wants to know what relationship one of its largest unions and two partners have cooked up to look at buying the company. So IBC has asked a Bankruptcy Court judge in Kansas City to force the Teamsters union, investor Yucaipa Companies LLC and Mexican baker Grupo Bimbo to share details of an accord among them. The three, which have to make a purchase offer until December 13, are calling the company´s request an attempt to block their chance to submit a reorganization plan for the business.
IBC mired in Chapter 11 bankruptcy for more than three years, has said other potential bidders could be turned away unless the exclusive agreement is disclosed. The company said in a recent court filing that the trio could block other bids, which must be made by January 15. Los Angeles-based Yucaipa this week filed an objection to IBC´s request, saying disclosure would put an «undue burden» on Yupaica. Until this month, IBC had not allowed Yucaipa access to confidential information needed to make a bid because it refused to withhold the details from the Teamsters.
Financing for the company´s plan to emerge from bankruptcy depends on union agreements, but the Teamsters, which represents nearly 10.000 of IBC´s 25.000 workers, has said it would rather see the company liquidated than partner with IBC. IBC´s new business plan, which the union has criticized, includes gaining concessions from organized labor and reworking the company´s delivery system. Last year Kansas City based Interstate Bakeries Corporation lost 112,8 million USD on revenue of 2,9 billion USD.
Addition (Update)
Kansas City / MO. (11.30. / wib) Judge rejects IBC attempt to get information from would-be buyer: A federal bankruptcy judge has denied a request by IBC to force a group considering a bid for the baker to disclose terms of an agreement with a key union. The decision this week from U.S. Bankruptcy Judge Jerry Venters followed court arguments from IBC that it needed to know the terms of an exclusive agreement between the International Brotherhood of Teamsters – which represents 9.500 IBC workers – and the U.S. bakery division of Grupo Bimbo and Los Angeles-based investment firm Yucaipa Companies. Grupo Bimbo and Yucaipa are considering a bid for the wholesale baker …
