IBC plans to pay 37 percent of pension plan debt
Jennifer Mann, The Kansas City Star
Monday, January 28, 2008
Unsecured creditors owed almost $194 million by Interstate Bakeries Corp. will be repaid 26.1 percent of their debts under a revised reorganization plan filed by the Wonder Bread maker.
The company said it plans to issue 3,333,333 shares of new common stock and $50 million of Class B stock that will be used to pay existing stakeholders at least some of what they’re owed.
The company expects to pay its prepetition lenders and secured creditors 100 percent in the form of new stock and other financial instruments. Pension plans owed $18.8 million will receive 36.7 of what they’re owed while holders of Interstate’s stock are wiped out in the reorganized company.
The amended disclosure statement fills in many details missing from the first one the company filed in early November and which is the subject of a hearing on Tuesday in the U.S. Bankruptcy Court in Kansas City. At that hearing, the judge is expected to rule on whether the company can move forward in submitting its proposal to creditors which can vote for or against the plan.
The filing also discloses that Interstate is still hoping to come to an agreement with the International Brotherhood of Teamsters that will allow it to implement a new way of delivering products.
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