Interstate Bakeries: urged to exit chapter 11

Kansas City / MO. (beu) Two entities have filed limited objections to efforts by Interstate Bakeries Corporation (IBC) to extend its exclusive right to file a reorganization plan. JPMorgan Chase Bank, which was owed millions of dollars when IBC filed for bankruptcy in September 2004, says the baking company should only have until the end of October to either put forth its plan of reorganization, or come up with one to liquidate the company in an orderly manner.

That contrasts with IBC’s request to extend its exclusivity period until January 15, or if that is denied by the court, until the end of October to come up with alternatives, including selling the company in whole or in parts. Meanwhile the unsecured creditors´ committee, representing thousands of entities owed millions of dollars by Interstate, also filed. The committee supports IBC´s efforts to extend its exclusivity until January 15 but only if it lifts restrictions of potential investors to sign confidentiality agreements that would prohibit them from talking to third parties, including the committee.

The objections to IBC´s request come two days after one filed by the International Brotherhood of Teamsters, which says the maker of Twinkies and Wonder bread has had ample time to develop an exit strategy from bankruptcy, and argues that the motion should be denied altogether. The matter will be taken up next days by the U.S. Bankruptcy Court in Kansas City (sources: ibc / ibt / jpm).

bakenet:eu