Kansas City / MO. (ibc) Interstate Bakeries Corporation (IBC) announced that it has reached an agreement in principle with GE Capital Corporation on key terms for a revised asset-based revolving credit financing facility. «We are now working diligently with GE Capital and our other financing providers to finalize all documentation for our exit financing. We are optimistic that we will emerge from Chapter 11 in the near future», said Craig Jung, CEO of IBC. IBC´s existing debtor-in-possession financing matures, and its exit financing commitments expire, on February 09, 2009. «Given today´s challenging credit markets, our road to emergence from Chapter 11 has been longer and more challenging than anticipated, but we have now reached the final stretch», Jung said. «While much work remains to be done to close our financing transactions, we believe that our accord with GE Capital has cleared the last significant obstacle to our emergence». Negotiations with GE Capital over the past several days have been constructive, and so I am optimistic we will have a timely completion of this transaction». IBC said it has filed a motion with the bankruptcy court seeking approval to close on the amended terms of the revolving credit facility, and that it expects the court to have a hearing on the motion on January 29, 2009. IBC also cautioned that there can be no assurance that its exit financing will close as expected.
2009-01-13: IBC Provides Update In Response to Inquiries Regarding Progress On Discussions with Exit Financing Lenders
Kansas City / MO. (ibc) Interstate Bakeries Corporation (IBC) said, in response to media and other inquiries, that it has been engaged this week in productive discussions with GE Capital Corporation to finalize documentation for an asset-based revolving credit agreement. IBC said it is hopeful that in the very near future documentation for the revolving credit agreement will be finalized and the exit financing will close. IBC said that all parties in the discussion are focused on the importance of completing the transaction, in order to allow IBC to emerge from Chapter 11 and preserve the jobs of IBC´s 22’000 employees.